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OptionAutomator Options Trading Glossary:
Definition, Examples & Resources:Straddle'
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What is Straddle in Options Trading ?
An option trading strategy in which same quantity of puts and calls are purchased or written with same
date, same strike and on the same underlying security.
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Glossary: Calendar Strangle
Similar to a calendar straddle. A calendar strangle involves buying a long term strangle and selling a short term strangle simultaneously. This is a neutral options' trading strategy.[click to read more]
Glossary: Covered Straddle Write
A misnomer term (as it does not hedge the position completely) used when a straddle of the same underlying instrument is written against this open underlying instrument.[click to read more]
Glossary: Strap Straddle
An upside biased long straddle strategy in which more calls are bought than puts to take advantage of the expected upside move.[click to read more]
Glossary: Strip Straddle
A type of bearish Straddle consisting of larger number of puts contracts purchased than call contracts.[click to read more]
Glossary: Synthetic Short Straddle
Any complex position in stocks, futures and options market that replicates the payoff of standard short straddle.[click to read more]
Glossary: Synthetic Straddle
A complex trading strategy in which a position similar to Long Straddle is achieved by trading combination of stocks and call option contracts.[click to read more]
NOW Is The Best Time To Be An Options Trader
1973 was perhaps the most important year in the history of options. It was the year when Fischer Black and Myron Scholes came out...
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