Covered Straddle
Definition
An options strategy that involves selling both a call and a put against owned shares of the underlying stock, collecting premium from both while maintaining a long stock position.
Example
A covered straddle profits in range-bound or slightly bullish markets by collecting double premium while holding shares.
Related Terms
Frequently Asked Question
What is a Covered Straddle?
A covered straddle sells both a call and a put against owned stock. It collects premium from both sides while the long stock provides partial protection on the put side.
APA Citation
Last updated:
· Source: VixShield Trading Glossary — From SPX Mastery by Russell Clark
⚠️ Not financial advice. This definition is educational content from the SPX Mastery book series by Russell Clark (VixShield). Past performance is not indicative of future results. Trading options involves substantial risk of loss and is not appropriate for all investors. Always paper trade before risking real capital.