Consider a hypothetical example in which you buy both a call and a put with a strike price of 100 yen for a premium of 5 yen each. You pay 10 yen in total and the break-even points are 90 yen and 110 yen. You make a profit if the price at expiry moves outside that range and a loss if it stays inside. The loss is at most the 10 yen paid. If you sell both instead, the profit and loss is reversed: you keep a profit if the price stays between 90 yen and 110 yen, but the loss on the upside has no cap.
Straddle
- Japanese
- ストラドル
- Last reviewed
- September 25, 2026
This is a draft, shown for review before publication.
A straddle is a combination in which you buy both, or sell both, a call option (call) and a put option (put) with the same expiry and the same strike price. Its profit and loss depends on how far the price of the underlying moves from the strike price by expiry, not on the direction.