Скачать или смотреть Long Straddle Strategy Simply Explained W/Example. Essentials of Investments. CFA Exam

In this video, I discuss the long straddle strategy. A long straddle is an options strategy where the trader purchases both a long call and a long put on the same underlying asset with the same expiration date and strike price.

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What Is a Straddle?
A straddle is a neutral options strategy that involves simultaneously buying both a put option and a call option for the underlying security with the same strike price and the same expiration date.


A trader will profit from a long straddle when the price of the security rises or falls from the strike price by an amount more than the total cost of the premium paid. Profit potential is virtually unlimited, so long as the price of the underlying security moves very sharply.


KEY TAKEAWAYS