collar directional trade and strategy for volatility

is collar, short butterfly, long butterfly, covered call all directional trade? are directional trade affected by volatility?

can i say volatility is main difference between directional startegy and non-directional option strategy?

butterfly (put and call) is betting on low vol

collar is a protective strategy (directional - not vol)

covered call not a vol trade (based on price)

Straddle IS a vol play - biggest vol play of them all if you don’t have a clue where the vol will be, but betting that vol will happen

so is straddle a directional trade? how to differentiate a trade is directional or non directional?

Straddle is purely a vol trade. You have no idea what direction it’s going - you’re betting that’s it’s just “going” (i.e. volatile).

Think of it. You buy a $50 call and put (assume So is $50). You pay $3 for each the call and put, so your breakeven is either $44 or $56. You don’t give a sh*t where it goes, just that it “goes”. You don’t care about the direction (not a directional play) just that it moves (a vol play).

Hope that helps.

according to internet: A general term referring to the strategy used by investors that open positions, either long or short, on the belief that they are able to correctly predict the movement of price in a security.

Read more: so long call option, short option, bull spread, bear spread, collar are all directional trade? why covered call is not directional trade?

Rely on investopedia please. I need to pass.