Trading the Straddle

Luiggi Trejo
3 min readFeb 28
Photo by Adam Nowakowski on Unsplash

In derivatives trading, a straddle is a popular trading strategy that involves buying both a call option and a put option on the same underlying asset, at the same strike price, and with the same expiration date.

By purchasing both a call option and a put option, the trader is betting that the underlying asset will experience significant price volatility, but is uncertain about the direction of the price movement.

Luiggi Trejo

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