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Creating Option Straddles

A straddle is an investment strategy that involves the purchase or sale of an option allowing the investor to profit regardless of the direction of movement of the underlying asset, usually a stock. There are two straddle strategies, a long straddle and a short straddle. Click on this post to learn more about the differences between these two straddle strategies.

Option Spreads

Options SpreadsĀ are option trading strategies which make use of combinations of buying and selling call and put options of the same or varying strike prices and expiration dates to achieve specific objectives (hedging, arbitrage, etc.).