what is long straddle 
the long straddle is an options strategy where the trader purchases a long call and a long put on the same underlying asset with the same expiration date and strike price the goal is to profit from a strong move in either direction by the underlying asset following a market event understanding long straddlesthe long straddle strategy bets that the underlying asset will move significantly in price either higher or lower the profit profile is the same no matter which way the asset moves typically the trader thinks the underlying asset will move from a low volatility state to a high volatility state based on the imminent release of new information the strike price is at the money or as close to it as possible since calls benefit from an upward move and a put benefits from a downward move in the underlying security both of these components cancel out small moves in either direction the goal of a long straddle is to profit from a strong move in either direction by the underlying asset traders may use a long straddle ahead of a significant event that impacts a company such as 