Short Straddle Series
5 videos • 21,019 views • by Saketh Ramakrishna Short Straddle The short straddle strategy is a neutral options strategy that profits from a large move in the underlying security, regardless of direction. To execute a short straddle, you sell both a put and a call option with the same strike price and expiration date. The short straddle strategy is most profitable when the underlying security is expected to trade within a narrow range. If the underlying security moves significantly in either direction, you will lose money. However, if the underlying security stays within the expected range, you will keep the entire premium collected from selling the options. The short straddle strategy is a relatively low-risk strategy, but it also has the potential for limited profits. If you are looking for a strategy with the potential for large profits, the short straddle may not be the best option for you.