In expectation of increased price stability,an investor sells a call option and at the same time sells a put option with common exercise prices on the same underlying asset.The strategy is known as a:

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Selling a call and a put option simultaneously with the same exercise price is known as a short straddle. This strategy is used when an investor expects stability in the price of the underlying asset. By selling both options, the investor receives a premium from both options, which can provide a source of income. However, the tradeoff is unlimited potential losses if the price of the underlying asset moves too far away from the exercise price in either direction.

In Expectation of Increased Price Stability,an Investor Sells a Call