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Volatility strategyIntermediate

Long Straddle

Buy a call and put at the same strike – profits from large moves either way.

When to use

Before major events (earnings, Fed) with low IV.

Step-by-step

  1. 1

    Pick ATM strike before expected event (e.g. earnings)

  2. 2

    Buy call and put simultaneously

  3. 3

    Close after the event

Example

NVDA pre-earnings at 900. Buy 900 call (40) + 900 put (38) = 78 premium. Breakevens 822 and 978.