Assertion: straddle's profit | /r/HasProperty | earned
Facets:
Source sentences:
text: The maximum profit is earned if the short straddle is held to expiration, the stock price closes exactly at the strike price and both options expire worthless.
text: The maximum profit is earned if the short strangle is held to expiration, the stock price closes at or between the strike prices and both options expire worthless.
text: Profits can also be earned if volatility is expected to increase enough so that the increase in the option prices because of increased volatility, measured by vega, more than offsets the decaying time value of the options, measured by theta.
text: However, because the options are out-of-the-money, a long strangle will be less likely to be profitable and whatever profits are earned will be less than for a long straddle.