What Is a 'Straddle' Options Strategy? ▴ Learn

What Is a ‘Straddle’ Options Strategy?

A straddle is an options strategy that involves simultaneously buying or selling a Call and a Put option on the same underlying asset, with the same strike price and expiration date. A long straddle is a bet on high volatility, profiting from a large price movement in either direction.

A short straddle is a bet on low volatility, profiting if the price remains stable.

How Can a Combination of a Call and a Put Option Be Used to Create a ‘Straddle’ Strategy?

What Is a “Bear Put Spread” and How Does It Limit Risk Compared to Buying a Single Put?

How Does Selling a Put Option Relate to the Risk of a Covered Call (Put-Call Parity)?

How Can a “Straddle” Option Strategy Be Used to Profit from a PoS Transition Event?