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The long straddle (buying a straddle) is a market-neutral options trading strategy that consists of buying a call and put option at the same strike price and in the same expiration cycle. While the strategy is technically directionally neutral, long straddles profit from significant stock price movements in either direction or increases in implied volatility.
In this video, you’ll learn:
1. What are the characteristics of the long straddle strategy?
2. What does the expiration risk graph look like for a long straddle position?
3. How do long straddles perform when the stock price changes?
Straddle Options Strategy Explained (w/ Examples):
==== FAVORITE OPTIONS TRADING BOOKS ====
How to Price & Trade Options:
Option Volatility and Pricing:
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