What is a Straddle Option Trading Strategy? Straddle Explained!

What is a straddle in options trading? In this quick finance explainer, we break down the straddle options strategy in simple terms. A straddle is used when a trader expects a big move in a stock, but does not know whether the move will be up or down. This video assumes you already understand the basics of call and put options. Need a refresher? What is a Call Option? https://youtu.be/WmPg-3raxYA What is a Put Option? https://youtu.be/jo_B25uobgg In this video, you’ll learn: What a straddle is Why traders use straddles Why it is called a straddle How a long straddle works A simple $100 stock example Why the stock needs to move enough The main risk: paying two premiums and losing value to time decay A straddle can profit from a large move in either direction, but if the move is too small, both options can lose value. Educational purposes only. Not financial advice. #Straddle #OptionsTrading #CallOptions #PutOptions #Investing #Finance #StockMarket #OptionsStrategy #RiskManagement #CFA