A long straddle is an options strategy that involves buying at-the-money puts and calls for the same security with the same expiration date in hopes of profiting off of expected price volatility ...

There's plenty of risk involved with a short straddle, which is why these premium-selling strategies are reserved for experienced option traders with margin accounts. By selling both a call option ...

To initiate a long straddle, you will simultaneously buy to open a call option and a put option on the same underlying stock. Both options will have the same strike price and the same expiration date.

Still, you can end up paying a lot for an option’s time value, only to watch that value decay. This strategy is just the reverse of the long straddle. In the short straddle, the trader sells a ...

An Iron Butterfly is a neutral options strategy that involves selling an at-the-money (ATM) straddle while purchasing out-of-the-money (OTM) wings to cap potential risk. According to analysts at ...

Options are a popular way for traders to make money in the market. While basic option strategies let traders take big swings — with some big risks — more advanced multi-leg options strategies ...