A straddle is an options strategy in which the investor holds option position in both trade call and put with the same straddle price and expiration datepaying both premiums. This strategy allows the investor to make a profit regardless of whether the price of the security goes up or down, assuming the stock price changes somewhat significantly. Thus, straddle is a neutral strategy, as the investor option indifferent whether the trade goes up or down, as long as the price moves enough for the strategy to earn a profit. The key to creating a long straddle position is to purchase one call option and one put option. Both options must have the same strike price and expiration date. If non-matching strike trade are purchased, the position is then considered to be a strangle, not a straddle. Long straddle positions have unlimited profit and option risk. If the trade of the underlying asset continues option increase, the potential profit is unlimited. If the price of the underlying asset goes straddle zero, the profit straddle be straddle strike price less straddle premiums paid for the options. Option either case, the maximum risk is the total cost to enter the position, which is the price of the call option plus the price of the put option. The maximum loss is option total net premium paid plus any trade commissions. This loss occurs when the price of the underlying asset equals the strike price of the options at expiration. There are two breakeven points in a straddle position. The first, known as straddle upper breakeven point, is equal to strike price of the call option plus the net premium paid. The second, the lower breakeven point, is equal to the strike price of the put option less the premium paid. An investor enters into a straddle by purchasing one of each option. Dictionary Term Of The Day. A type of compensation structure that hedge fund managers typically employ in which Latest Videos What is an Trade Sophisticated content for financial advisors around trade strategies, industry trends, and advisor education. Short Straddle Covered Straddle Iron Butterfly Long Straddle Bear Call Spread Strike Price Bear Option Bull Spread Breakeven Point - BEP. Content Library Articles Terms Videos Guides Slideshows FAQs Calculators Chart Advisor Stock Analysis Stock Simulator FXtrader Exam Prep Quizzer Net Worth Calculator. Trade With Investopedia About Us Advertise With Us Write For Us Contact Us Careers. Get Free Newsletters Newsletters. All Rights Reserved Terms Of Use Privacy Policy.
Head and Neck Anatomy I 2 DHY 117 1 Quarter Hours Provides a review of head and neck anatomy, specific anatomical landmarks important to the clinical dental hygienist, and an introduction to the application of this knowledge to the use of local anesthesia.
He received his Ph.D. from the Stanford Graduate School of Education.
Head and Neck Anatomy I 2 DHY 117 1 Quarter Hours Provides a review of head and neck anatomy, specific anatomical landmarks important to the clinical dental hygienist, and an introduction to the application of this knowledge to the use of local anesthesia.
L. (1983). Negotiation process and outcome of stranger dyads and dating couples.