In finance, a straddle is an investment strategy involving the purchase or sale of particular option derivatives that allows the holder to profit based on how much the price of the underlying security moves, regardless of the direction of price movement. The purchase of particular option derivatives is known as a long straddle, while the sale of the option derivatives is known as a short straddle.

Read more about Straddle:  Long Straddle, Short Straddle

Other articles related to "straddle":

Strangle (options) - Long Strangle
... Like a long straddle, the options expire at the same time, but unlike a straddle, the options have different strike prices ... A strangle can be less expensive than a straddle if the strike prices are out-of-the-money ...
Straddle (disambiguation)
... Straddle can mean To stand with the feet or wheels on opposite sides of something see Wiktionarystraddle Straddle, a financial investment strategy Straddle bets, a type of poker bet Straddle ...
Betting In Poker - Straddle and Sleeper Bets - Examples
... Straddle Alice posts $1, Bob posts $2, Carol posts a straddle of $4 ... Because of the straddle, David is now first to act he folds ... Ellen calls the straddle ...
Pin (professional Wrestling) - Types - Straddle
... The shoulder straddle pin is typical variation of the straddle pin ... It sees the attacker kneeling on the opponent's shoulders facing the head, pinning them on the mat ...
Short Straddle - Straddle At-the-money
... and a put at the same strike, you are buying a straddle ... This is because if, say, the stock price is 85 and you are buying a straddle at 50 (i.e ...

Famous quotes containing the word straddle:

    Information networks straddle the world. Nothing remains concealed. But the sheer volume of information dissolves the information. We are unable to take it all in.
    Günther Grass (b. 1927)