How Can a Trader Use a Long Straddle Strategy to Profit from Expected Network Announcements?

A long straddle involves simultaneously buying a call and a put option with the same strike price and expiration date. A trader uses this strategy when they expect a major price movement from a network announcement (e.g. a major upgrade) but are unsure of the direction.

The profit comes if the price moves significantly enough in either direction to cover the cost of both premiums.