Long Straddle
(And Combination)
Long straddle
- You profit from volatility.
For example, if you buy 10 XYZ June 60 call options and buy 10 XYZ June 60 put options.
The maximum gains for the call options are unlimited.
The maximum gains for the put options are the strike price less the combined premium.
The maximum loss for a long straddle is the combined premium.
The break even point is the strike price plus or minus the combined premium.
