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Glossary · Trading basics · S

All terms

Straddle in plain English.

A call and a put at the same strike and expiration. Bought, it profits from a large move in either direction; sold, it profits if the stock stays near the strike.

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Track

Trading basics

29 terms in this track

Taught in

Straddles and volatility: trading the size of the move

In the index

108 of 129

Filed under S

Connections

8

Related terms mapped below

01

The idea, in context

How to read the picture above and where the Academy teaches it.

Reading the illustration

Implied volatility sets the width of the bell: the shaded middle is the expected move, the tails are the rare big moves.

This definition usesExpiration

In French: Straddle

Where it’s taught

Trading basics

Straddles and volatility: trading the size of the move

“Straddles and volatility: trading the size of the move” introduces this term with worked examples, a quiz and the trades around it. The Academy is part of the YieldCove membership.

About the AcademyOpen the lesson (members)

02

8 terms around this one — the words its definition uses, its lesson siblings and the terms that build on it.

  • Used in this definition
  • Same lesson
  • Builds on this term
  • Same track

03

Where to go next

Understand it, try it with real numbers, then track it for free.

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