A short straddle is a two-legged spread that offers an initial upfront credit, but carries the risk of potentially heavy (in fact, technically unlimited) losses. The strategy is intended to profit ...

NVDA Short Straddle Example Let’s take a look at one final straddle using Nvidia. Using the January 17 expiry, the trade would involve selling the $144 strike call and the $144 strike put.

There are two types of straddle trades—long straddles and short straddles. The type of trade described in the section above is a long straddle, which is more common. As described above ...

Long Straddle Versus Short Straddle: The long straddle options strategy involves buying both a call and put option with the same strike price and expiration date, betting on significant price ...