straddles

A straddle is an options trading strategy that involves purchasing both a call option (betting the price will go up) and a put option (betting the price will go down) at the same strike price and expiration date. This setup allows traders to profit from significant price movements in either direction, whether the asset's price increases or decreases. It's useful when you expect high volatility but are unsure of the direction. The key is that the potential for profit exists if the asset's price moves enough in either direction, while the maximum loss is limited to the total premiums paid for the options.