Hello traders, A long straddle is an options trading strategy where an investor simultaneously buys a call option and a put option with the same strike price and expiration date on the same underlying asset. This strategy is employed when the investor believes that the underlying asset will experience significant price volatility, but is unsure about the direction of the price movement. By purchasing both a call and a put option, the investor profits from any substantial price movement in either direction. The potential for unlimited profit makes the long straddle an attractive strategy in highly volatile markets, although it also carries the risk of loss if the price remains relatively stable.
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