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Implied volatility pricing

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Extrapolating Straddle Prices

by Dart-Throw Trader
The following Question was asked so I thought I would share a video that explains it in a little more detail.  Here is the asked question: I'm fairly new to options, but I've read some books and have the basics down. I was chatting with a professional options trader, and he mentioned wanting to examine certain events and extrapolate straddle prices. What is meant by this, and why is the focus on straddle prices? Nothing I have read emphasizes the need to examine straddle prices, but I have heard other traders talk about this before too. I'm not a trader [...]