Introducing ETH Vol Bull Vault

Long Straddle Option Strategy Explained:

  • A straddle is an option strategy where investor simultaneously buy a call and a put option on the same asset (ETH in our case), with the same expiration date and strike price.

  • The goal of a straddle is to profit from significant price movements in the underlying asset (ETH in our case), regardless of whether it goes up or down.

  • If the stock price moves a lot in either direction, one of the options will become profitable while the other may expire worthless or result in a loss. The profit from the winning option can potentially outweigh the loss from the losing option, resulting in an overall profit.

  • However, if the underlying asset (ETH) remains stable and doesn't move much, investor may incur a loss

  • Hence to invest in a Long Straddle option strategy means to anticipate future underlying asset price will be volatile.

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