Options / Long straddle
Payoff at expiry for a generic example with the stock at 100. Green is profit, red is loss, dashed lines are break-even prices.
You buy a call and a put at the same strike. You profit if the stock moves far enough in either direction.
When it is used: Around events such as earnings, when you expect a big move but not its direction.
Main risk: You lose the full cost if the stock finishes near the strike. Option prices before events already include the expected move.
- Net cost
- $760 per contract
- Max gain
- Large
- Max loss
- -$760
- Break-even
- 92.4 / 107.6
- Legs
- 2
The legs in this example
| Action | Contract | Strike | Example price |
|---|---|---|---|
| Buy | 1 call | strike 100 | $4.00 per share |
| Buy | 1 put | strike 100 | $3.60 per share |
Research that fits this view
- All companies we cover, with ratings
- SEC filing changes (events that can move a stock)
- How we rate and track calls
Results for this strategy
We track our own hypothetical examples privately and publish each result at least 30 days after the play has closed, wins and losses together, once there are enough closed plays to say something. None have closed yet. This table will list every closed play with its expiry result and a link to the research it came from.
Back to all option strategies · How we track results