---
title: "Straddle "
description: "1. Long StraddleOverviewLong straddle is an options strategy where you buy a call and a put with the same strike price and expiration date. This strategy profits from large price movements in either direction.FeaturesComponentsProfit sourceUnderlying priceSourceRiseCall value increaseFallPut value increaseCase studyLet's imagine a made-up company called TECH.Right now, TECH's stock price is $100 per share. With its e"
slug: "straddle"
locale: "en"
region: "hk"
region_label: "Hong Kong"
url: "https://longbridge.com/hk/en/support/topics/optionstrading/straddle.md"
updated_at: "2025-10-10T08:14:12.000Z"
category: "optionstrading"
category_title: "Options trading"
references:
  related:
    - title: "Vertical spread"
      url: "https://longbridge.com/hk/en/support/topics/optionstrading/vertical-spread.md"
    - title: "Collar"
      url: "https://longbridge.com/hk/en/support/topics/optionstrading/collar.md"
    - title: "Strangle "
      url: "https://longbridge.com/hk/en/support/topics/optionstrading/strangle.md"
    - title: "Covered Stock"
      url: "https://longbridge.com/hk/en/support/topics/optionstrading/covered-stock.md"
    - title: "Option Market Data Fields Introductions"
      url: "https://longbridge.com/hk/en/support/topics/optionstrading/op-fields-intro.md"
---

# Straddle 

[Table of Contents](https://longbridge.com/hk/en/support/toc.md)

## 1\. Long Straddle 

-   Overview

Long straddle is an options strategy where you buy a call and a put with the same strike price and expiration date. This strategy profits from large price movements in either direction.

-   Features

![](https://pub.pbkrs.com/uploads/2025/834d812f91663395cb70073a842f7598)

-   Components

![](https://pub.pbkrs.com/uploads/2025/17997542e5f889d67a9f0091e1329538)

-   Profit source

Underlying price

Source

Rise

Call value increase

Fall

Put value increase

-   Case study

Let's imagine a made-up company called TECH.

Right now, TECH's stock price is $100 per share. With its earnings report approaching and significant market disagreement on future price direction, you anticipate the stock will experience a large price movement but are unsure of the specific direction, so you decide to use a Long Straddle strategy.

You buy one Call option with a strike price of $100, paying a premium of $5 per share. Simultaneously, you buy one Put option with the same strike price of $100, also paying a premium of $5 per share.

![](https://pub.pbkrs.com/uploads/2025/4b7329a176c8a0950e938d2a68570f40)

## 2\. Short Straddle 

-   **Overview**

Short straddle is an options strategy where you sell a call and a put with the same strike price and expiration date. This strategy profits when the asset’s price stays near the strike price.

-   Features

![](https://pub.pbkrs.com/uploads/2025/6600fa7b5e1f7af4cef37f9b81142e92)

-   Components

![](https://pub.pbkrs.com/uploads/2025/9c217ce071f506d0f2b0dabdb26483d8)

-   Profit source

Underlying price

Source

Rise

Premium from out-of-the-money calls

Fall

Premium from out-of-the-money puts

-   Case study

Let's imagine a made-up company called TECH.

Right now, TECH's stock price is $100 per share. Given its recent low volatility in a stable market environment, you think the stock price will remain stable in the near future, so you decide to use a Short Straddle strategy.

You sell one Call option with a strike price of $100, receiving a premium of $5 per share. Simultaneously, you sell one Put option with a strike price of $100, also receiving a premium of $5 per share.

![](https://pub.pbkrs.com/uploads/2025/ce74544ee5b9acf94089c16c52a9ad29)

---

> **Disclaimer**: This article is for reference only and does not constitute any investment advice. Content provided by [Longbridge](https://longbridge.com).