yandex watch
forex ask logo
forex ask banner
Welcome, Guest

Forgot Password

Not yet a Member? Register Here

Loader
Question Details
Username: Maria

Rating:
Guru Stars

Asked to: Jacob Rogers

Date Created: 05 Oct 2017
Category 21
Tag Financial
Question What is a 'Straddle'?
Advice from Guru
Hello Maria,

A straddle is an options strategy in which the investor holds a position in both a call and put with the same strike price and expiration date, paying both premiums. This strategy allows the investor to make a profit regardless of whether the price of the security goes up or down, assuming the stock price changes somewhat significantly.

Straddles are a good strategy to pursue if an investor believes that a stock's price will move significantly but is unsure as to which direction. Thus, this is a neutral strategy, as the investor is indifferent whether the stock goes up or down, as long as the price moves enough for the strategy to earn a profit.

List of Gurus

  • Guru Most read Heng Kim
    Heng Kim

    Hi PrettyWoman, The job market is the market in which employers search for

    Read more
  • Guru Most read Anton Luyten
    Anton Luyten

    Hello Fluffy, A harami cross is a Japanese candlestick pattern that consists

    Read more
  • Guru Most read Chaoxiang Lee
    Chaoxiang Lee

    Hi Maria, A caplet is a kind of call option based on interest rates. The

    Read more
  • Guru Most read Apinya Kamon
    Apinya Kamon

    Hello ForexGuy, A false market occurs when prices are manipulated and impacted

    Read more
  • Guru Most read Tom Burke
    Tom Burke

    Hello LuckyWoman, The yearly probability of living is determined by consulting

    Read more
  • Guru forex ask most-read Apinya Kamon
    Apinya Kamon

    Hello Andrew, A condition in which an economy runs neither a trade surplus or

    Read more
  • Guru forex ask most-read Apinya Kamon
    Apinya Kamon

    Hello Peter, An iceberg order is a large single order that has been divided

    Read more
  • Guru forex ask most-read Goro Yang
    Goro Yang

    Hi ForexGuy, Abbreviations that refer to the settlement date of security

    Read more
  • Guru forex ask most-read Anton Luyten
    Anton Luyten

    Hello Fluffy, The difference between a country's imports and its exports.

    Read more
  • Guru forex ask most-read Jun Wang
    Jun Wang

    Hi PrettyWoman, The spread between the highest bid price and lowest ask price

    Read more
  • Guru forex ask newest Heng Kim
    Heng Kim

    Hi PrettyWoman, The job market is the market in which employers search for

    Read more
  • Guru forex ask newest Anton Luyten
    Anton Luyten

    Hello Fluffy, A harami cross is a Japanese candlestick pattern that consists

    Read more
  • Guru forex ask newest Chaoxiang Lee
    Chaoxiang Lee

    Hi Maria, A caplet is a kind of call option based on interest rates. The

    Read more
  • Guru forex ask newest Apinya Kamon
    Apinya Kamon

    Hello ForexGuy, A false market occurs when prices are manipulated and impacted

    Read more
  • Guru forex ask newest Tom Burke
    Tom Burke

    Hello LuckyWoman, The yearly probability of living is determined by consulting

    Read more