straddle

Description The documentation about the various trading strategies adopted by Nick Leeson which ultimately resulted in the downfall of Barings bank. Leeson believed that the Nikkei 225 was set to continue trading a narrow range. So he had taken a short straddle position. A short straddle will...

WHAT ARE STRIPS: Strips consists of a long position in 1 call & 2 puts with the same exercise price and expiration date. In this the investor is betting that there will be big stock price move and considers a decrease in the stock more likely than an increase. WHAT ARE STRAPS: Straps...

There are 3 simple option strategies .Straddle, Strangle and Gut. 1. Straddle is a volatile option strategy or what we call Market Neutral Strategy. Being market neutral means that a long Straddle profits no matter if the underlying asset goes up or down. Yes, a Long Straddle allows you to...