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What Is a Straddle?
The straddle is the classic direction-agnostic structure: you don’t care which way price goes, only how far — or, if you sell it, that it doesn’t.
NoVo Options Trading · 2026
A straddle is an options position combining a call and a put at the same strike — a long straddle bets on a big move either way, a short straddle bets on stillness.
Long straddle
Buy a call and a put at the same (usually at-the-money) strike. You profit if the underlying makes a big move in either direction — a bet on volatility, direction-agnostic. Max loss is the combined premium (defined). The catch: you pay for two options and need a large move to overcome the cost and decay.
Short straddle
Sell a call and a put at the same strike. You profit if the underlying barely moves (collecting decay), with max profit at the strike. But it’s undefined-risk — a big move loses a lot, potentially unbounded. High premium, high risk (see 0DTE short straddle).
A long straddle buys a big move either way; a short straddle sells stillness. Same structure, opposite bets on volatility.
The takeaway
A straddle is a same-strike call + put — long for a big move, short for stillness. Its wider-strike cousin is the strangle. NoVo trades single directional options, not straddles, but the straddle’s price is a useful expected-move gauge.
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NoVo is a software tool for market analysis and for executing trades you initiate, not financial advice. This article is general education, not investment advice. Options trading involves substantial risk of loss, up to and including your entire capital. NoVo makes no guarantee of profit, win rate, or performance, and past results do not predict future outcomes. You are responsible for your own broker account, configuration, and trading decisions.