A short straddle is an options strategy comprised of selling both a ATM call option and a ATM put option with the same strike price and expiration date. It is used when the trader believes the underlying asset will not move significantly higher or lower over the lives of the options contracts. The maximum profit is the amount of premium collected by writing the options. The potential loss can be unlimited, so it is typically a strategy for more advanced traders.
Download this template for a one-time fee of $15 and use with your MarketXLS subscription
Instant Delivery, One time price, exclusively made for MarketXLS users
This template uses MarketXLS functions to pull information. Without an active MarketXLS subscription it will not be useful. Read terms before purchasing
Read terms of purchase
See how MarketXLS helps you take advantage in the markets.