A straddle is an options strategy where the investor holds a position in both a call and a put with the same strike price and expiration date. This strategy is used when an investor expects a large move in a stock but is unsure of the direction. It offers the potential for profit whether the stock price goes up or down, but it also involves significant risks and potential for loss.
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Jenna Lofton, MBA is a stock trading and investment expert with over a decade of experience in the financial industry. She began her career as a financial advisor on Wall Street and now helps everyday investors make smarter financial decisions through StockHitter.com.
Her insights simplify complex financial topics into actionable strategies for beginners and seasoned traders alike.