An options strategy involving the simultaneous purchase (or sale) of a call and put at the same strike price and expiry.
A straddle is an options strategy where a trader buys (or sells) a call and a put option at the same strike price and expiry date. A long straddle profits from a large price move in either direction and is typically used ahead of high-uncertainty events like earnings or policy announcements. A short straddle profits when the underlying stays close to the strike, collecting premium from both legs, but carries theoretically unlimited risk if the market moves sharply.
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