🐎 A person sitting astride 🌏 A person between groups 💹 An investor with both options

straddler

8.9

An investor who buys two options on the same stock to profit if its price goes up or down

noun
/ˈstræd.lɚ/

Specialized

: estratega de straddle

As a straddler, she managed risk by holding both call and put options on the stock.

Examples

Many straddlers use this strategy to hedge their investments.
The experienced straddler profited from the market's sharp movement in either direction.
Many investors become a straddler during periods of high market volatility.
The straddler profited from the volatile market conditions.
The experienced straddler profited from the market's sharp movement in either direction.
As a straddler, she managed risk by holding both call and put options on the stock.
Many investors become a straddler during periods of high market volatility.

Surface Forms

straddler singular

straddlers plural

Morphology

straddler = straddle (semi-transparent) = straddle + er

The financial meaning is a specialized, metaphorical extension of 'straddle' (covering both sides); it is related but technical, so not fully transparent to general learners.

Etymology

Straddler The word straddler comes from straddle 'to sit or stand with a leg on each side' plus -er 'person'. In trading, a straddler 'sits' on both sides by holding both a call and a put, so they can make money if the price moves a lot in either direction.