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Glite Dictionary
🚴 To sit with legs apart 🌉 To cross over 🤔 To avoid choosing 🤸 Legs apart move 🧍 Legs on each side ⚖️ No clear position 💹 Dual investment bet
straddle

straddle

1 9.9
An investment buying both a sell and a buy option on the same asset to profit from big price moves
  • noun
  • /ˈstrædəl/
  • Specialized
translation icon : straddle
  • And when volatility is low, where can you potentially go in for a straddle where you go buy a call and you buy a put.

And when volatility is low, where can you potentially go in for a straddle where you go buy a call and you buy a put.

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Examples

  • Investors often use a long straddle strategy to hedge against market volatility by purchasing options with the same expiration date.

  • So we'll be looking at straddles, strangles, spreads and butterfly spreads, all those sorts of things.

  • Now with a chooser option, it's an awful lot like a straddle, obviously.

  • Some guys are, are really, really good with straddles and strangles and, and some guys are really, really good with spread trading.

  • Fortunately, I've got a straddle on Enphase that went through earnings here and we're going to make some tendies on that Enphase trade, which is great.

  • A long straddle allows investors to profit from significant movements in stock prices by buying both call and put options.

  • The potential gains from a well-executed straddle can be substantial if the asset's price experiences large fluctuations.

How Directional

call option
  • Specialized
2 7.7
strangle
  • Specialized
2 9.9
straddle
  • Specialized
1 9.9

Surface Forms

straddle singular
straddles plural

Etymology

The financial use of straddle uses the same image of being on both sides: you take a position that covers ups and downs. So a financial straddle is buying options that let you profit if the price moves a lot up or down.