Long Straddle

Dictionary Says

Definition of 'Long Straddle'

A strategy of trading options whereby the trader will purchase a long call and a long put with the same underlying asset, expiration date and strike price. The strike price will usually be at the money or near the current market price of the underlying security.
Investopedia Says

Investopedia explains 'Long Straddle'

The strategy is a bet on increased volatility in the future as profits from this strategy are maximized if the underlying security moves up or down from present levels. Should the underylying security's price fail to move or move only a small amount, the options will be worthless at expiration.

Directory (Option Strategy)

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  4. Backspread

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    Option strategy ...
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  18. Call Ratio Backspread

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  19. Collar

    1. A protective ...
  20. Collar Agreement

    An arrangement ...
  21. Condor Spread

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  22. Contingent Order

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  25. Covered Combination

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  26. Covered Straddle

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    An optional ...
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    Two options with ...
  30. Delta Hedging

    An options ...
  31. Delta Neutral

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  33. Diagonal Spread

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    A tax form ...

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  46. Horizontal Spread

    An options ...
  47. Implied Volatility - IV

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    An investment ...
  49. Iron Butterfly

    An options ...
  50. Iron Condor

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  51. Leg

    1. Term ...
  52. Leg Out

    One side of a ...
  53. Long Jelly Roll

    An option ...
  54. Long Leg

    The part of ...

  55. Long Put

    An options ...
  56. Long Straddle

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  57. Long-Term Equity Anticipation ...

    Publicly traded ...
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    1. The income ...
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  69. Overwrite

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  70. Overwriting

    An options ...

  71. Positive Butterfly

    A ...
  72. Protective Put

    A ...

  73. Put

    An option ...
  74. Put Calendar

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  75. Put Ratio Backspread

    An option ...

  76. Ratio Call Write

    An option ...
  77. Ratio Spread

    An options ...
  78. Reverse Calendar Spread

    An options or ...
  79. Reverse Conversion

    A finance and ...
  80. Risk Reversal

    1. ...
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    The replacement ...
  82. Roll Forward

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  83. Roll Up

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  85. Sell To Open

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  86. Series 4

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  87. Short Leg

    Any contract in ...
  88. Short Straddle

    An options ...
  89. Straddle

    An options ...
  90. Strangle

    An options ...
  91. Swing Option

    A type of ...

  92. Synthetic Dividend

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    An option ...
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Related Definitions

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  3. Short Straddle

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  5. Iron Condor

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  6. Covered Straddle

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  7. Volatility

    1. A statistical ...
  8. Risk Capital

    Investment funds ...
  9. Price Risk

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  10. Cum Rights

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Articles Of Interest

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    Being both short and long has advantages. Find out how to straddle a position to your advantage.
  2. The Long Straddle And Price Consolidation

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    These option strategies allow traders to play on earnings announcements without taking a side.
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    Discover the world of options, from primary concepts to how options work and why you might use them.
  5. Profit On Any Price Change With Long Straddles

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  6. Tips For Series 7 Options Questions

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  7. Stock Options: What's Price Got To Do With It?

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  8. What's the difference between a straddle and a strangle?

  9. Retirement Savings Tips For 35- To 44-Year-Olds

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  10. Derivatives 101

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