A Long Straddle is an options trading strategy that works best when you expect a stock to move sharply — but you don’t know which direction.

1.  How it works:

• You buy a call option and a put option for the same stock.

   

• Both options have the same strike price and the same expiration date.

   

This means:

• If the stock price goes way up, your call option makes you money.

   

• If the stock price drops a lot, your put option makes you money.

   

The only way you lose money is if the stock doesn’t move much — because then both options might expire worthless.