How Does a ‘Straddle’ Options Strategy Utilize Volatility?
A straddle involves simultaneously buying both a call and a put option on the same underlying asset, with the same strike price and expiration date. This strategy profits if the underlying asset's price moves significantly in either direction, capitalizing on a sharp increase in realized volatility, regardless of the direction.
Glossar
Short Straddle
Strategy ⎊ A short straddle, within cryptocurrency derivatives, represents a neutral options strategy predicated on anticipating minimal price movement in the underlying asset.
Same Strike Price
Option ⎊ Within cryptocurrency derivatives, a same-strike price scenario arises when multiple contracts share the identical strike price, a crucial factor influencing market dynamics and trading strategies.
Straddle
Strategy ⎊ A straddle is an options trading strategy involving the simultaneous purchase or sale of both a call option and a put option on the same underlying asset.