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Stocks & Commodities V. 41:05 (38–39, 48): Explore Your Options by Jay Kaeppel

Stocks & Commodities V. 41:05 (38–39, 48): Explore Your Options by Jay Kaeppel

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Explore Your Options by Jay Kaeppel

A STOCK LIKELY TO MAKE A MOVE? CONSIDER A LONG STRADDLE

When should I consider a long straddle, that is, buying both a call and a put option?

A long straddle involves holding a long call and a long put option at the same time. It is generally considered a neutral strategy because it doesnt matter if the price of the underlying security subsequently rises or falls ...
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