The straddle is an options trading strategy, so named for the shape it makes on a pricing chart; your position literally “straddles” the price of the underlying asset. With the straddle, you ...

Here, this example involves buying straddle options with a strike price of $50 and paying a total of $10 in premium for the two options. In this case, the worst-case scenario is if the stock doesn ...

Example The entire game of Short Straddle is based on prediction and determining the possible range of expected trading price of a stock on indices.

Options straddles and options strangles are two advanced options strategies that can be used to capitalize on changes in implied volatility (IV) and stock price volatility. Options straddles and ...

The straddle options strategy is employed by traders expecting a significant move from an equity, but who are unsure of the direction of this move. Additionally, since the strategy relies heavily ...

Straddles and com-binations are volatility trades unique to the options market. A straddle or a combination is profitable if the underlying security trades inside (if you are selling a straddle or a ...

The short straddle options strategy uses a short call and a short put at the same strike to profit from stagnant price action in the underlying stock.

An example might help. With CHK trading around $5.18, a logical place to initiate a long straddle is at the near-the-money weekly 8/5 5 strike.

One interesting strategy known as a straddle option can help you make money whether the market goes up or down, as long as it moves sharply enough in either direction.