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Straddle

Options & Volatility

A straddle is an options strategy that involves simultaneously purchasing or selling a call and a put option on the same underlying security, with the same strike price and expiration date.

A long straddle profits if the stock makes a large move in either direction — you don't need to predict which way, just that it will move significantly. It's a common earnings strategy, but IV crush is the risk if the move is smaller than expected.

Further reading: Wikipedia

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