short straddle

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

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short straddle
a situation in which an investor sells both a call option and a put option on the same shares because they think that the share price will probably stay the same
Main Entry: straddle

Financial and business terms. 2012.

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Look at other dictionaries:

  • Short Straddle — An options strategy carried out by holding a short position in both a call and a put that have the same strike price and expiration date. The maximum profit is the amount of premium collected by writing the options. If a trader writes a straddle… …   Investment dictionary

  • Short straddle — A straddle in which one put and one call are sold. The New York Times Financial Glossary * * * short straddle ► a situation in which an investor sells both a call option and a put option on the same shares because they think that the share price… …   Financial and business terms

  • Straddle — In finance, a straddle is an investment strategy involving the purchase or sale of particular option derivatives that allows the holder to profit based on how much the price of the underlying security moves, regardless of the direction of price… …   Wikipedia

  • Straddle (Wirtschaft) — Ein Straddle (engl. für „Grätsche”) ist eine Optionsstrategie. Man spekuliert damit auf sich stark ändernde Kurse (long straddle) bzw. Kurse die gleich bleiben (short straddle). Der Short Straddle birgt ein unbegrenztes Verlustrisiko.… …   Deutsch Wikipedia

  • straddle — For futures, the same as spreading. In futures options, a straddle is formed by going long a call and a put of the same strike price ( long straddle), or going short a call and a put of the same strike price ( short straddle) . The CENTER ONLINE… …   Financial and business terms

  • Straddle — Purchase or sale of an equal number of puts and calls with the same terms at the same time. Related: spread * * * straddle strad‧dle [ˈstrædl] noun [countable] FINANCE 1. a combination of call option S (= rights to buy particular shares a …   Financial and business terms

  • straddle — strad·dle / strad əl/ n: the purchase of an equal number of put options and call options on the same underlying securities with the same price and maturity date Merriam Webster’s Dictionary of Law. Merriam Webster. 1996. straddle …   Law dictionary

  • Short (finance) — Schematic representation of short selling in two steps. The short seller borrows shares and immediately sells them. He then waits, hoping for the stock price to decrease, when the seller can profit by purchasing the shares to return to the lender …   Wikipedia

  • straddle — verb 1》 sit or stand with one leg on either side of.     ↘archaic stand, walk, or sit with one s legs wide apart. 2》 extend across both sides of. 3》 N. Amer. maintain an equivocal position regarding (a political issue). 4》 fire shots or bombs at… …   English new terms dictionary

  • straddle — [c]/ˈstrædl / (say stradl) verb (straddled, straddling) –verb (i) 1. to walk, stand, or sit with the legs wide apart; stand or sit astride. 2. to stand wide apart, as the legs. –verb (t) 3. to walk, stand, or sit with one leg on each side of;… …  

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