Word info

short straddle

Noun

Meaning

short straddle (plural short straddles)

(finance) An investment position in a futures deal, where the trader places a call order and a put order at the same time on the same item, in hopes of the item remaining at the same price when the order expires, neither falling nor rising, straddling the divide, so as to reap the premiums of the unexercised call and put.

Source: en.wiktionary.org

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