Also known as: Long Straddle
Long ATM call + long ATM put. Profits from a big move either way.
Shape illustration on a normalized underlying — open the Lab below to price it on a real option chain.
Buy a call AND a put at the same strike and expiration. You do not care which way the stock moves — only that it moves further than the combined premium.
Ahead of binary events (earnings, rulings) when you expect a bigger move than the market has priced. The catch: the market usually prices events well.
Maximum loss is both premiums — and it happens when the stock sits still. Implied volatility collapse after events can hurt even when the stock does move.
Similar: Both long-volatility — profit from a big move either way.
Different: The straddle (ATM) costs more but needs a smaller move; the strangle (OTM strikes) is cheaper but needs a bigger one.
Similar: Both bet on a large move in either direction.
Different: The reverse condor caps both profit and cost with wings; the straddle keeps unlimited upside at a higher price.
New to options? Start with the free curriculum — or see which strategy fits your outlook.
Educational content — not investment advice. Options involve substantial risk and are not suitable for every investor. All trading on Opus Options Trading is simulated.