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Straddle

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An
strategy where a
and
are bought or
at the same
(typically
Buying the strikes creates a
straddle, while selling the strikes creates a
straddle. Straddles can be
or
depending on strike selection and price action.

Short Straddles

Short straddles have limited profit potential, and
Risk Profile: Neutral Short Straddle

Long Straddles

Long straddles have unlimited profit potential, and
Risk Profile: Neutral Long Straddle

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