What is a long straddle option strategy?
A) A long call option + long put option with the same strike prices
B) A short call option + short put option with the same strike prices
C) A long call option + short put option with the same strike prices
D) A short call option + long put option with the same strike prices

Question

Quizplus · Accepted Answer

A long straddle option strategy involves buying both a call option and a put option with the same strike price and expiration date, giving the investor the potential for profit regardless of which way the underlying asset moves. This can be advantageous in volatile markets where it is uncertain which direction the asset will move. Option A is the only choice that matches this definition.

What Is a Long Straddle Option Strategy