Free Version

Dashboard
Review Topics
Quizzes
Practice Exams
Flashcards
Vocabulary
Overheard at Shmoop: "All I hear all day long at school is how great bison is at this or how wonderful bison did that. Bison bison bison!"

The Straddle

To Do List

Straddle

Okay, there are so many good jokes here but unfortunately our couth editor won't let us do them. So let's just get on with it. Sigh.

A straddle is a trade where the investor buys a call and a put at the same strike and with the same expiration dates.

Straddle example: Goose buys BUBB November $40 strike puts for $2; and also buys BUBB November $40 strike calls for $3. Straddles are all about framing—there is usually only so much up or down that these trades can go and they are usually e...

Looking for more? Why is this annoying box in the way? It's because you haven't paid for the course yet!

$77.77
Next: Combinations and other Flavors
Prev: Spreads You Won't Find on the Condiments Aisle

*Securities is a registered trademark of the College Board, which was not involved in the production of, and does not endorse this product.