The Straddle Strategy

This page is completely focused on the StockedUp Straddle Strategy and options trading tips. The strategy may seem complicated but it is actually very simple. To start off, just follow these 4 steps:
1) Buy the underlying straddles that I post in the StockedUp Facebook group.
2) Keep buying more of the underlying straddles until the straddles start rising in value (this is called averaging down). * Only average down when you are down 10% or more.
3) Sell each underlying straddle when you have a 20% profit.
4) DONE! You just made a 20% profit.

EXAMPLE
Day 1: buy a straddle for ex. XYZ @ 1.80 on Monday morning.
Day 2: price drops 10% buy the same straddle except you buy 2 so your average drops. Now you have a total of 3 straddles.
Day 3: price drops 10% again so now you buy 5 or 6 to average down. You keep doing that until the straddle pops. These straddles pop; we just don't know when. Remember** Set up a good til canceled order at 20% so if your average is 1.35 then you place a good til cancel for 1.62. If the price does not pop, then you keep averaging down of the same straddle and again place a GTC order for 20% and by Thursday or Friday, you should make your good 20% profit.

What is a straddle?
A straddle is when you buy a call and put for the same strike price on a stock. For example, the 110 WMT straddle would consist of the 110 WMT call and the 110 WMT put.

Why straddles?
They provide the opportunity to leverage your money and to profit whether the underlying stock goes up or down.

How do I calculate my sell price?
Average price * 1.2 = sell price
For example, let's say your average price is 1.5. Your sell price would be 1.8 (1.5*1.2)

What happens if the straddle doesn't sell for 20% profit by Friday?
If the straddle did not sell for a profit by Thursday then sell for breakeven on Friday. If you cannot breakeven within the first hour of the market open on Friday, then sell immediately.

What expiration date should the options be?
All weekly expirations, the closest expiring option.

What strike prices to buy when averaging down?
Always buy the original strike price posted on the watchlist. The strike prices never change.