What is straddle?Straddle
Buying (or selling) a call and a put at the same strike; a long straddle bets on a big move, a short straddle bets on no move.
Animation · straddle
Learn “straddle” in an animated lesson
- Advanced Option StrategiesEarnings and IV Crush
Before earnings everyone rushes to buy options and IV gets pushed up. Once the results are out, uncertainty vanishes and IV drops instantly, so you can lose money even if you called the direction right.
- Advanced Option StrategiesStraddles and Strangles: Betting on a Big Move
Not sure whether it'll go up or down, only that it'll move a lot? Buy a call and a put together. Same strike is a straddle; different strikes is a strangle.
Related terms
See how “straddle” works for yourself with an animation you can drag and play.
Go to “Earnings and IV Crush”