Buying both a call and put at the same strike and expiration — a volatility trade.
Profits if underlying makes a big move in either direction. Loses if stock stays flat. Used pre-earnings or before binary events. "Strangle" is similar but uses different OTM strikes (cheaper, requires bigger move).
Buying both a call and put at the same strike and expiration — a volatility trade. Profits if underlying makes a big move in either direction. Loses if stock stays flat. Used pre-earnings or before binary events. "Strangle" is similar but uses different OTM strikes (cheaper, requires bigger move).
In derivatives, Straddle is one of the building blocks investors use to compare opportunities and assess risk. Understanding it helps you read research notes, earnings reports, and market commentary without getting lost in jargon.
Profits if underlying makes a big move in either direction. Loses if stock stays flat.
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