What is a straddle?
"A straddle is an options strategy in which one ""buys"" or ""sells"" options of the same maturity (expiry date) that allow the ""buyer"" or ""seller"" to profit based on how much the price of the underlying security moves, regardless of the direction of price movement. IE: A long straddle would be: You buy a call and a put at the same strike price and the same expiration date. Your profit would be if the underlying asset(the stock) moves far enough down or up(higher then the premiums you paid for the put + call options) (In case, one waits till expiry) Profit = Expiry Level - Strike Price - (Premium Paid for Bought Options) Straddle" "Came across this very nice video which explains the ""Long Straddle"". Thought will share the link here: http://www.khanacademy.org/finance-economics/core-finance/v/long-straddle"
I'm sorry I guess what i meant to say was, what's the downside here? Why isn't everyone doing this, what am i missing? Someone clarified that i'm completely exposed to FX risk if I bring it back.   What if I am IN australia, how would I do this, short USD's? Would you work for 50% of a billion? how about 40%? 30%? At what point would you retire and sell the company? Because that is the reality behind the topic in question.  If you used to make 80% of a billion. Then 70%, then 60%, then 50%, then 40%.   At what point do you have enough money and want to retire? At what point do you decide that the net results of your efforts are no longer worth your input? This guys is 70+ been working more than half his life in this company.   At what point do you call it quits and move to the beach on your yacht? He has enough assets to do what he wants for the rest of his life and his employees probably do not, but guess who gets to make the decisions whether it continues or gets sold? Up until your strategy's money losing leg is stopped out, you have zero PnL, while a straddle has lost time value but may gain from price movements - all the PnL at that time you cannot capture with your strategy. Also stop loss cannot guarantee your price. Not sure if I follow your question completely. Re: What if some fraud takes place that's too big even for it to fund?   SIPC does not fund anything. What it does is takes over the troubled brokerage firm, books / assets and returns the money faster. Refer to SIPC - What SIPC Covers... What it Does Not and more specifically SIPC - Why We Are Not the FDIC. SIPC is free for ordinary investors. To get the same from elsewhere one has to pay the premium. Edit: The event we are saying is a large brokrage firm, takes all of the Margin Money from Customer Accounts and loses it and also sell off all the stocks actually shown as being held in customer account ... that would be to big. While its not clear as to what exactly will happens, my guess is that the limits per customers will go down as initial payments. Subsequent payments will only be done after recover of funds from the bankrupt firm. What normally happens when a brokrage firm goes down is some of the money from customers account is diverted ... stocks are typically safe and not diverted. Hence the way SIPC works is that it will give the money back to customer faster to individuals. In absence of SIPC individual investors would have had to fight for themselves. I am not a structured products expert, just relaying what's in the article, but I'd imagine it includes a larger equity tranche in the structured product, thereby giving more cushion against losses to the actual debt investors in the tranches above it in the payment water fall. #####&amp;#009;  ######&amp;#009;  ####&amp;#009;  [**Superseded scientific theories**](https://en.wikipedia.org/wiki/Superseded%20scientific%20theories): [](#sfw)   ---  &gt;A __superseded__, or __obsolete, scientific theory__ is a [scientific theory](https://en.wikipedia.org/wiki/Scientific_theory) that mainstream [scientific consensus](https://en.wikipedia.org/wiki/Scientific_consensus) once commonly accepted but now no longer considers the most complete description of reality, or simply false. This label does not cover [protoscientific](https://en.wikipedia.org/wiki/Protoscience) or [fringe science](https://en.wikipedia.org/wiki/Fringe_science) theories with limited support in the [scientific community](https://en.wikipedia.org/wiki/Scientific_community). Also, it does not mean theories that were never widely accepted. Some theories that were only supported under specific political authorities, such as [Lysenkoism](https://en.wikipedia.org/wiki/Lysenkoism), may also be described as obsolete or superseded.  &gt;====  &gt;[**Image**](https://i.imgur.com/k5AlkZB.jpg) [^(i)](https://commons.wikimedia.org/wiki/File:Cellarius_ptolemaic_system_c2.jpg) - *The obsolete Geocentric model of the universe places the Earth at the centre.*  ---  ^Interesting: [^Imponderable ^fluid](https://en.wikipedia.org/wiki/Imponderable_fluid) ^| [^List ^of ^topics ^characterized ^as ^pseudoscience](https://en.wikipedia.org/wiki/List_of_topics_characterized_as_pseudoscience) ^| [^Falsifiability](https://en.wikipedia.org/wiki/Falsifiability) ^| [^Caloric ^theory](https://en.wikipedia.org/wiki/Caloric_theory)   ^Parent ^commenter ^can [^toggle ^NSFW](http://www.np.reddit.com/message/compose?to=autowikibot&amp;subject=AutoWikibot NSFW toggle&amp;message=%2Btoggle-nsfw+cjip1kq) ^or[](#or) [^delete](http://www.np.reddit.com/message/compose?to=autowikibot&amp;subject=AutoWikibot Deletion&amp;message=%2Bdelete+cjip1kq)^. ^Will ^also ^delete ^on ^comment ^score ^of ^-1 ^or ^less. ^| [^(FAQs)](http://www.np.reddit.com/r/autowikibot/wiki/index) ^| [^Mods](http://www.np.reddit.com/r/autowikibot/comments/1x013o/for_moderators_switches_commands_and_css/) ^| [^Magic ^Words](http://www.np.reddit.com/r/autowikibot/comments/1ux484/ask_wikibot/) I'm not so sure I buy this article, but for anyone who doesn't know, Rajan wrote a great book called Fault Lines that linked entrenching class disparity in the U.S. with the mortgage build up and the following crisis. Great read Someone referred to the bend as a living hinge, I've heard it referred to as a kerf-bend.  My office has a laser cutter and might be interested in putting it to use.  What kind of volume are you looking for?  If low-volume, PM me.