Quote Originally Posted by verminaard View Post
Quick newb question about the mechanics of straddles

I assume when you buy a straddle it operates as 2 independent options (one call and one put) and you can choose to exercise the options (or not) independently at any time up until expiration?

this is a really good question and ive wondered the same myself. i place my straddles/strangles as two unique plays for the simple reason that i see no good reason to execute a contract on an option worth 2% of its original value when its got time left to rebound.

that said i can see it being useful to have it stay a single transaction for PDT reasons but im not even sure it would under the circumstances you describe.