How Can a Straddle Option Strategy Be Used to Speculate on the Outcome of a Major Governance Vote?

A straddle involves simultaneously buying a call and a put option with the same strike price and expiration date. This strategy profits from high volatility, regardless of the direction of the price move.

A major governance vote often leads to a significant price swing (up if the proposal is positive, down if negative or contentious). A straddle allows the trader to profit from this expected volatility without predicting the direction.