What Is the Purpose of Using a ‘Straddle’ or ‘Strangle’ Options Strategy?

Both Straddle and Strangle options strategies are designed to profit from a significant price movement in the underlying cryptocurrency, regardless of the direction. A Straddle involves simultaneously buying a Call and a Put with the same strike price and expiration date.

A Strangle involves buying a Call and a Put with different, out-of-the-money strike prices. The purpose is to capitalize on high volatility, betting that the price will move enough to cover the combined premiums paid and generate a profit.