{"id":10539,"date":"2021-11-19T09:00:00","date_gmt":"2021-11-19T14:00:00","guid":{"rendered":"http:\/\/aky.pbv.mybluehost.me\/?p=10539"},"modified":"2021-11-22T04:23:47","modified_gmt":"2021-11-22T09:23:47","slug":"long-straddle","status":"publish","type":"post","link":"https:\/\/aky.pbv.mybluehost.me\/long-straddle\/","title":{"rendered":"Long Straddle Definition and Strategies"},"content":{"rendered":"\n

Options trading is a common way traders try to multiply their earnings. While commonly perceived as risky, there are certain strategies with limited downsides that you can use to lower your risk. A long straddle is one such popular strategy.<\/p>\n\n\n\n\n\n

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What is a Long Straddle?<\/strong><\/h2>\n\n\n\n

The long straddle strategy is a combination of a long call and a long put, both having the same strike price and expiration date. The strike price is generally close to the current price of the asset. Either the call or put can be in the money depending on how price deviates from the strike price. <\/p>\n\n\n\n

The trader loses all his money if there is no movement in the price of the asset. Because, in this case both the call and put would be worthless. Since the trader is purchasing both a call and a put, a long straddle option incurs a higher cost than what the trader would have paid for only buying either one or the other. <\/p>\n\n\n\n

This strategy is particularly useful for traders who expect a significant price movement, but don\u2019t yet know the direction of this movement. The trader gains more profit the farther the share price moves away from the strike price irrespective of the direction.<\/p>\n\n\n

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Long Straddle Options Trading Strategy Explained<\/div><\/div>
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