Core Insights - Options trading reached a record trading volume in 2025, with a focus on the top stocks for options traders based on four-week straddle returns [1] Group 1: Four-Week Straddles - A straddle involves buying both a call option and a put option on a stock with the same strike and expiration date, allowing for profit regardless of stock direction [2] - Sustained movement in one direction within the four-week timeframe is essential for profitable returns, as a two-week move in one direction followed by a significant move in the opposite direction can lead to losses [3][4] Group 2: Best Stocks for Straddles - The analysis identified the top 20 stocks for four-week straddle plays in 2025, highlighting their average straddle return, year-to-date return, and the percentage of positive straddles [6] - Technology stocks dominate the list, with Western Digital (WDC) leading, followed by Oracle (ORCL), Advanced Micro Devices (AMD), and Micron Technology (MU) [6] Group 3: Consistency and Doubling Returns - A separate list of stocks that were consistently positive for straddle plays in 2025 was provided, with Western Digital (WDC) again at the top [7] - The stocks that had straddles which doubled most often were led by Seagate Technologies (STX), with Western Digital (WDC) just one spot behind [8]
Top Option Plays of 2025: Tech Outperformer Takes Top Spot
Yahoo Finance·2025-12-31 13:00