short straddle

Short straddle

A straddle involves both purchase and sale. In short straddle one put and one call are sold.

short straddle

The short sale of an equal number of call options and put options with identical strike prices and expiration dates. A short straddle produces a profit only when the price of the underlying asset remains within a limited range.
References in periodicals archive ?
Long straddle provides opportunities for unlimited rewards and limited risk, whereas short straddle offers limited rewards and unlimited risk.
Wal-Mart Stores saw what appears to be a short straddle at its March 55 strike yesterday.
This finding suggests that the positive returns from the short straddle positions mainly result from decreases in implied volatilities of the options in the straddle.
The striking feature in Figure 5 is that equity behaves like a short straddle.
One interesting trading strategy that we haven't covered in a while is the short straddle.
In fact, it appears that an option player may have initiated a short straddle on CI.
CINCINNATI -- In yesterday's edition of Advanced Options, we explored the short straddle strategy.
One interesting trading strategy that we haven't covered in this column is the short straddle.
A short straddle position's maximum profit is limited to the premium collected from both options sold, or just over $1.
It appears that a sizable short straddle position may have been initiated on Monday.
In option trading yesterday, it looks like a short straddle was potentially initiated.
Even more complex option trades such as butterflies and short straddles also revolve around expectations for the underlying security.