In a long straddle, when the underlying stock goes above the breakeven point, the calls will profit and the puts will be completely out of the money, resulting in an overall profitable position.

There are plenty of ways to profit on a stock's movement, beyond investing in the actual stock itself. Options provide a nearly endless array of strategies, due to the countless ways you can combine ...

Volatility has eased in recent days as the market digests the possibility of more rate cuts. However, volatility could rear its ugly head again at any time. The VIX Index closed at 17.24 yesterday ...

Gordon Scott has been an active investor and technical analyst or 20+ years. He is a Chartered Market Technician (CMT). Thomas J Catalano is a CFP and Registered Investment Adviser with the state of ...

Jay Kaeppel has 25+ years of experience as a trader, analyst, and portfolio manager. He is the author of four books on financial trading. Gordon Scott has been an active investor and technical analyst ...

The long straddle is ideal when you're not sure whether a stock is going to move higher or lower -- but you expect dramatic price action nonetheless. Maybe there's an earnings report or product launch ...

Long straddles allow gains if a stock moves significantly, either up or down, after setup. The trade's risk is capped at the initial cost, but full loss occurs if stock ends at strike price. Straddles ...