To construct the straddle the investor writes both calls and puts with at the money strike prices and the same expiration. This strategy will have a net credit since it involves two initial short ...

You would make $3.00 on exercise of the long call, however, the put would expire worthless. Since you paid $4.00 for the straddle initially, this would net you a $1.00 loss. 2. Stock rallies to 88 ...

If the shares fall to zero by expiration, the maximum potential profit is $58.64 (put strike minus net debit). The worst-case scenario for the long straddle is for the stock to remain completely ...

How to profit from a big move in either direction With earnings season right around the corner, options players might want to look into employing a long straddle strategy. A long straddle is ...