Straddle

In finance, a straddle is a strategy that involves the simultaneous purchase or sale of put and call options that share the same strike price and expiration date. The purpose of a straddle is to profit from significant price movements in either direction. For example, if a trader believes that the price of a stock is going to make a big move, but is unsure of the direction, they can enter into a straddle by buying a call option and a put option on that stock with the same strike price and expiration date. If the stock price moves significantly in either direction, the trader can profit from their options positions.