Definition: Straddle | Tackle Trading: The #1 rated trading education platform

Straddle

The Straddle is a bidirectional options strategy that involves simultaneously buying (in case of a Long Straddle) or a selling (in case of a Short Straddle) an ATM Put and a ATM Call at the same strike price, same expiration date and on the same underlying security.

STRATEGY BIAS: Bidirectional

STRIKE PRICES: Same

EXPIRATION DATE: Same

UNDERLYING SECURITY: Same

Long Straddle risk graph

Glossary - Straddle long straddle risk graph

Short Straddle risk graph

Glossary - Straddle short straddle risk graph

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