Option Strategy

Stradle - Option Strategy

Straddle is a strategy achieved by combining a CALL and a PUT option at the same strike price. The strategy may be achieved by either going LONG in both the transactions or going SHORT in both the transactions.

A Long Straddle is favorable when the price is expected to move in either direction and it may fetch unlimited* profits, whereas the maximum loss is limited. A Short Straddle fetches profit where the expected movement in price is small.

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