What Is a Straddle In Options Trading?
Options trading continues to become more popular. Research shows that options trading activity grew by 35 percent from 2020 to 2021. It also peaked in 2021, with 39 million contracts being traded daily.
If you’re new to options trading, you’ll want to know the right strategies and approaches to use to maximize your profits. The global COVID-19 pandemic saw numerous day traders and swing traders flock to trading options. However, research shows that most retail investors incurred significant losses instead of generating sizable returns.
What is a Straddle?
A straddle is a common options trading strategy that involves purchasing or selling call and put options for an asset at the same strike price and expiration date. A straddle strategy only works when the asset’s price falls or ri...