# 3ABCDEFGHIJKLMNOPQRSTUVWYZ

Straddle

A market strategy involving one call option and one put option with the same strike and same expiry date. The strategy allows the buyer to take advantage of large price movements in either direction by exercising the call in a rising market and the put in a falling market. The risk is that prices move only slightly and the change is not enough to cover the costs of the two options.