Straddle

A straddle is an options trading strategy where an investor buys both a call option and a put option on the same underlying asset, with the same strike price and expiration date. This approach allows the trader to profit from significant price movements in either direction—up or down—without predicting which way the price will move. It's useful when expecting increased volatility but unsure of the direction. However, since both options cost money, the asset's price must move substantially to offset the combined premiums and generate a profit.