CNBC Explains

'Long Straddle' Options Strategy: CNBC Explains

CNBC Explains
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'Long Straddle' Options Strategy: CNBC Explains

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




Suggested prerequisite videos: Call Options, Put Options, Reading Actual Options Quotes