- 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.
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.
Investment dictionary. Academic. 2012.
Look at other dictionaries:
Long straddle — A straddle in which a long position is taken in both a put and call option. The New York Times Financial Glossary * * * long straddle ► a situation in which an investor buys both a call option and a put option on the same shares because they… … Financial and business terms
long straddle — Taking a long position in both a put and a call option. Bloomberg Financial Dictionary * * * long straddle ► a situation in which an investor buys both a call option and a put option on the same shares because they think that there will be a big… … Financial and business terms
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straddle — For futures, the same as spreading. In futures options, a straddle is formed by going long a call and a put of the same strike price ( long straddle), or going short a call and a put of the same strike price ( short straddle) . The CENTER ONLINE… … Financial and business terms
Straddle — Purchase or sale of an equal number of puts and calls with the same terms at the same time. Related: spread * * * straddle strad‧dle [ˈstrædl] noun [countable] FINANCE 1. a combination of call option S (= rights to buy particular shares a … Financial and business terms
Optionsstrategie — Optionsstrategien sind Anlagestrategien mit derivativen Finanzinstrumenten. Basierend auf einer positiven, neutralen oder negativen Markterwartung und der Volatilität des zugrundeliegenden Basiswerts (Underlying) der Optionen kann der Anleger… … Deutsch Wikipedia
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Strangle (options) — In finance, a strangle is an investment strategy involving the purchase or sale of particular option derivatives that allows the holder to profit based on how much the price of the underlying security moves, with relatively minimal exposure to… … Wikipedia