Straddle
From ACT Wiki
Options speculation.
A composite speculative deal in two options which results in profits from large changes in the underlying asset price, either up or down.
The straddle’s profit/loss profile is ‘V’ shaped.
It is also sometimes known as a bottom straddle or a long straddle.
A long straddle is constructed by simultaneously buying a call option and a put option with identical strike prices.
The opposite composite transaction - which is a mirror image of the ‘V’ shaped long straddle - is known as a top straddle or a short straddle.
This is the position taken by the seller of a conventional long straddle.
