Long Straddle - Components
Buy a call option and a put option on the underlying stock, at the same strike price.
Buy ATM Call + Buy ATM Put
Long Straddle - Expectation
Volatile
Long Straddle - Risk / Reward
Maximum Profit: Unlimited
Maximum Loss: Limited
Long Straddle - Breakeven Point
Upper Break Even Point = Strike Price + Net Debit Paid
Lower Break Even = Strike Price - Net Debit Paid
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