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Trading Strategies 1
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What are Straddle Option strategy?
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Identify opportunities for unlimited profits while taking limited risks by straddle Option strategy
What are Straddle Option strategy? How many times has it happened that you spend a lot of time assessing the market before you finally make your move? And it so happens that as soon as you initiate the trade, the market moves in an unpredicted fashion? Among all the market-neutral strategies, a long straddle is perhaps one of the simplest to implement. It provides the opportunity for unlimited profits while taking limited risks. On the upside, the potential for profit is unlimited since the event can result in the stock prices soaring. A short straddle is an investment strategy where you sell a call and put an option of the same underlying security, at the same expiration date and same strike price too. Now that we have reviewed these essential concepts related to options, let us take a look at how they play into the strangle strategy. Let's understand in detail the basics of option strategies and how to use them on Smart Money by Angel Broking.