Straddle
Definition
An options strategy involving the purchase (or sale) of both a call and a put at the same strike price and expiration. Profits from large moves in either direction.
Example
Long straddle profits if the underlying moves sharply beyond the total premium paid. Strangle Category: Options / Strategy Definition: Similar to a straddle but uses different strike prices (call higher, put lower). Cheaper but requires larger
Frequently Asked Question
What is Straddle in trading?
An options strategy involving the purchase (or sale) of both a call and a put at the same strike price and expiration. Profits from large moves in either direction.
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.