The purchase or sale of an equal number of puts and calls, with the same strike price and expiration dates. A straddle provides the opportunity to profit from a prediction about the future volatility of the market. Long straddles are used to profit from high volatility. Long straddles can be effective when an investor is confident that a stock price will change dramatically, but cannot predict the direction of the move. Short straddles represent the opposite prediction, that a stock price will not change.
Related information about straddle:
- Straddle - Wikipedia, the free encyclopedia
In finance, a straddle is an investment strategy involving the purchase or sale of particular option derivatives that allows the holder to profit based on how much ...
- Straddle Definition | Investopedia
An options strategy with which the investor holds a position in both a call and put with the same strike price and expiration date.
- straddle - definition of straddle by the Free Online Dictionary ...
a. To stand or sit with a leg on each side of; bestride: straddle a horse. b. To be on both sides of; extend over or across: a car straddling the centerline. 2.
- Straddle - Merriam-Webster Online
to stand, sit, or walk with the legs wide apart; especially : to sit astride. 2. : to spread out irregularly : sprawl. 3. : to favor or seem to favor two apparently opposite ...
- straddle - Wiktionary
straddle (third-person singular simple present straddles, present participle straddling, simple past and past participle straddled). To sit or stand with a leg on ...
- Option Straddle (Long Straddle) - The Options Guide
What is Long Straddle? See detailed explanations and examples on how and when to use the Long Straddle options trading strategy.
- Straddle | Define Straddle at Dictionary.com
/ˈstræd l/ Show Spelled [strad-l] Show IPA verb, strad·dled, strad·dling, noun. verb (used without object). 1. to walk, stand, or sit with the legs wide apart; stand or ...
- Long Straddle
Description. A long straddle is a combination of buying a call and buying a put, both with the same strike price and expiration. Together, they produce a position ...