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The trader benefits from subsiding volatility as well as the passage of time by holding the short straddle.
FORBES: Options Player Makes Calculated Bet That Nordstrom Will Cool Off
Both the short strangle and the short straddle strategies employed on Pfizer today indicate investors expect volatility in the price of the underlying shares to decline going forward.
FORBES: Bulls Swing For The Fences With Priceline, Silver Wheaton
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