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Short Straddle

A short straddle is the simultaneous sale of a put and a call on the same stock, with the same expiration date and the same strike price.

Additional Comments:

Traders of short straddles expect market stability—so they agree to buy the stock if it goes down and to sell it if it goes up, anticipating that it will actually be very close to the strike price at expiration.

Related Terms:

Long Straddle
A long straddle is the simultaneous purchase of a put and a call on the same ...

A neutral trade that involves simultaneously buying a call and put at the same strike price ...

Expiration Date
The day when the options contract expires. ...

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