what is a long straddle 
a long straddle is an options strategy that an investor makes when they anticipate that a particular stock will soon be undergoing volatility the investor believes the stock will make a significant move outside the trading range but is uncertain whether the stock price will head higher or lower the investor simultaneously buys an at the money call and an at the money put with the same expiration date and the same strike price to execute a long straddle the investor in many long straddle scenarios believes that an upcoming news event such as an earnings report or acquisition announcement will push the underlying stock from low volatility to high volatility the objective of the investor is to profit from a large move in price a small price movement will generally not be enough for an investor to make a profit from a long straddle 2