Straddle - Revision history

imported>Doug Williamson: Layout.

2022-09-11T15:59:08Z

Layout.

← Older revision		Revision as of 15:59, 11 September 2022
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	===Long straddle===		==Long straddle==

	A 'long' straddle’s profit/loss profile is ‘V’ shaped.		A 'long' straddle’s profit/loss profile is ‘V’ shaped.
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	===Short straddle===		==Short straddle==

	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''.		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''.

imported>Doug Williamson: Classify page.

2022-04-24T22:02:55Z

Classify page.

← Older revision		Revision as of 22:02, 24 April 2022
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	== See also ==		== See also ==
	* [[Option]]		* [[Option]]
			* [[Rogue trader]]
	* [[Speculation]]		* [[Speculation]]
	* [[Underlying asset]]		* [[Underlying asset]]
	* [[Volatility]]		* [[Volatility]]

			[[Category:Accounting,_tax_and_regulation]]
			[[Category:The_business_context]]

imported>Doug Williamson: Expand and add links.

2016-05-06T10:27:03Z

Expand and add links.

← Older revision		Revision as of 10:27, 6 May 2016
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	The long straddle results in profits from large changes in the underlying asset price, either up or down.		The long straddle results in profits from large changes in the underlying asset price, either up or down.

			A speculator who buys a straddle is betting that the volatility of the underlying asset price will be ''greater'' than the pricing of the options implies.

			For this reason, straddles are sometimes known as 'volatility trades'.


	A long straddle is constructed by simultaneously buying a call option and a put option with identical strike prices.		A long straddle is constructed by simultaneously buying a call option and a put option with identical strike prices.
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	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''.		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.		This is the position taken by the seller of a long straddle.


	Sellers of straddles anticipate that the price of the underlying asset will stay close to the strike price of the options they have sold. If they are wrong, the short straddle can result in unlimited losses.		Sellers of straddles anticipate that the price of the underlying asset will stay close to the strike price of the options they have sold. If they are wrong, the short straddle can result in unlimited losses.

			A speculator who sells a straddle is betting that the volatility of the underlying asset price will be ''less'' than the pricing of the options implies.


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	* [[Option]]		* [[Option]]
	* [[Speculation]]		* [[Speculation]]
			* [[Underlying asset]]
			* [[Volatility]]

imported>Doug Williamson: Expand.

2016-05-06T10:21:03Z

Expand.

← Older revision		Revision as of 10:21, 6 May 2016
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	''Options speculation''.		''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~~.		A composite speculative deal in two options.

	~~The straddle’s profit/loss profile is ‘V’ shaped.~~

	~~It is also sometimes known as a ''bottom~~ straddle'' ~~or a ''~~long straddle''.		===Long straddle===

			A 'long' straddle’s profit/loss profile is ‘V’ shaped.

			The long straddle results in profits from large changes in the underlying asset price, either up or down.

	A long straddle is constructed by simultaneously buying a call option and a put option with identical strike prices.		A long straddle is constructed by simultaneously buying a call option and a put option with identical strike prices.

			It is also sometimes known as a ''bottom straddle''.


			===Short straddle===

	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''.		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.		This is the position taken by the seller of a conventional long straddle.

			Sellers of straddles anticipate that the price of the underlying asset will stay close to the strike price of the options they have sold. If they are wrong, the short straddle can result in unlimited losses.

imported>Doug Williamson: Spacing 20/8/13

2013-08-20T08:37:06Z

Spacing 20/8/13

← Older revision		Revision as of 08:37, 20 August 2013
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	''Options speculation''.		''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.		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.		The straddle’s profit/loss profile is ‘V’ shaped.

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	A long straddle is constructed by simultaneously buying a call option and a put option with identical strike prices.		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.		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.


	== See also ==		== See also ==
	* [[Option]]		* [[Option]]
	* [[Speculation]]		* [[Speculation]]

imported>Administrator: CSV import

2012-10-23T14:20:47Z

CSV import

New page

''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.

== See also ==
* [[Option]]
* [[Speculation]]