Long Straddle

Market Terms

We don't know everything about the markets.  We're just devoted to learners.  Taken from those smarter than ourselves, here's how we define Long Straddle.

An options trading strategy involving a trader purchasing a long call and a long put on the same underlying asset at the same strike price and with the same expiration date.  The objective is to profit from a very strong move in either direction by the underlying asset.  This strategy isn’t fool-proof, however.  The risk is that the market may not react strongly to an event within the defined timeframe.