Options contracts offer interesting investing strategies not possible with stocks alone. For example, if you believe a stock will move drastically either up or down, you might use a strategy called a long straddle. Salman Khan of the describes this strategy, which employs both put options and call options to take advantage of major price moves.
From this video, you’ll understand:
- The rationale behind the long straddle strategy
- How both put and call options can be bundled to create an investment strategy