What Is a 'Straddle' Options Strategy? ⎊ Path

What Is a ‘Straddle’ Options Strategy?

A straddle is a non-directional options strategy involving the simultaneous purchase of a call and a put option on the same underlying asset, with the same strike price and the same expiration date. This strategy profits if the underlying asset moves significantly in either direction (up or down) from the strike price.

The maximum loss is limited to the combined premiums paid.

Why Is a Straddle Often Considered a Bet on Volatility?

What Is the Maximum Profit Potential for a Long Straddle Using ATM Options?

How Does a ‘Straddle’ Options Strategy Utilize Volatility?

In a Straddle Strategy, Why Are ATM Options Typically Chosen?

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

How Does a Trader Use a “Straddle” Strategy to Profit from Uncertainty in Moneyness?

How Is a ‘Synthetic Long Call’ Constructed Using the Underlying Asset and a Put Option?

Explain the Payoff Structure of a ‘Straddle’ Option Strategy