A straddle is a speculative strategy that represents the purchase of both a call and a put.

Name: A straddle is a speculative strategy that represents the purchase of both a call and a put.
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A straddle involves buying both a call option and a put option on the same underlying asset with the same expiration date and strike price. It is used as a way to profit from significant price movements in either direction, regardless of whether the stock goes up or down.

A Straddle Is a Speculative Strategy That Represents the Purchase