4.Strategy3: Practical Application of Straddle Options Strategy
@Tiger_Academy:
Hello,In the previous lesson, we learned about the basic concept of the vertical spread strategy and how to implement it using the app. Today, we are going to introduce the third common combination strategy—the straddle options strategy.1. What is a Straddle Options Strategy?The so-called straddle options strategy involves simultaneously trading both call and put options with the same expiration date and the same strike price. When implementing a long straddle options strategy, it means buying both call and put options. Since the buyer's loss in options is limited while the potential gains are unlimited, when combining both call and put options, as long as there is significant volatility in the stock price, theoretically, this strategy can be profitable. Therefore, this strategy is suitabl