Introducing ETH Vol Bull Vault
Last updated
Last updated
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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