What is a long straddle option strategy?
A) A long call option + long put option with the same
B) A short call option + short put option with the sa
C) A long call option + short put option with the sam
D) A short call option + long put option with the sam

Question

Quizplus · Accepted Answer

A long straddle option strategy involves buying a long call option and a long put option with the same strike price and expiration date. This is a bullish and bearish strategy because the investor profits if the stock either rises significantly or falls significantly. This strategy is best used when there is anticipated volatility in the underlying stock, as both options can profit from large price movements.

What Is a Long Straddle Option Strategy