Straddle
| Straddle | A neutral trade that involves simultaneously buying a call and put at the same strike price and with the same Expiration Date. Requires the underlying asset to move in an explosive nature (in either direction) in order to make the trade profitable. |
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Related Terms | ||
Directional Trade A trade that requires the underlying asset to move in one direction in order to produce profits. To make a profit, ... Series All option contracts of the same class that also have the same unit of trade, expiration date, and exercise price. Option ... Delta Neutral Refers to an options position constructed so that the profitability of the position relies on the magnitude of the move - ... | ||
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