Your browser is not supported. Please upgrade to one of the following browsers:

Google Chrome

Mozilla Firefox

Apple Safari

Microsoft Internet Explorer 9+

You may proceed to the site by clicking here, however some pages might not work correctly.

What Is an (Options) Straddle? - TheStreet Definition

Dictionary of Financial Terms

RSS Feed for Straddle Definition

A straddle is when you buy the identical put and calls on a stock (e.g. the February 50 puts and the February 50 calls).

Definitions of Financial Terms

Actively Managed Funds
Agency Securities
Alpha
Annuity
Arbitrage
Ask
Asset Backed Security
Back-End Load
Backlog
Barrels Per Day
Basic Earnings
Basis Points
Beige Book
Beta
Bid Price
Bid-to-Cover Ratio
Black-Scholes Model
Blue-Chips
Bond
Bottom-Up Investing
Breakout
Bucket Shop
Business Inventories
Butterfly Spread
Buy-Side
Callable Bond
Capital Asset
Capital Expenditure
Capitulation
Car and Truck Sales
Cash Flow
Charge to Earnings
Closed-End Fund
Collateralized Debt Obligation (CDO)
Common Stock
Consumer Price Index
Convertible Securities
Convexity
Corporate Bonds
Covered Call
Credit Default Swap (CDS)
Credit Risk
Credit Spread
Crude Oil
Cubic Foot
Day Rates
Delisted
Derivatives
Devaluation
Diluted Earnings
Distressed Securities
Diversification
Dow Jones Industrial Average
Dogs of the Dow
Dollar-Cost Averaging
Downstream
Duration (Bond)
Earnings Estimates
EBITDA
Economic Indicators
Employment Situation Report
Employee Stock Options
Ex-Dividend
Existing Home Sales
Expiration Cycle
Federal Reserve
Federal Open Market Committee
Federal Funds Rate
Float
FOMC Policy Statement
Front-End Load
Fundamentals
Gross Domestic Product
Growth Funds
Head and Shoulders
Hedge Fund
High-Yield Bond
Housing Starts
International Monetary Fund
Industrial Production and Capacity Utilization
Initial Jobless Claims
International Funds
Interest-Rate Risk
In-the-Money
Intrinsic Value
Investment Bank
Investment-Grade Bonds
January Effect
Kansas City Fed Manufacturing Survey
LBO (Leveraged Buyout)
Liability-Adjusted Cash Flow Yield
Load
Long (Position)
Majors (Oil)
Management Fee
Married Put
MOB (Municipal-Over-Bond) Spread
Momentum
Momentum Funds
Monetarism
Money-Center Banks
Mortgage-Backed Securities
Moving Average
Municipal Bonds
Naked (Put or Call)
Net Asset Value
Net Fund Flows
New-Home Sales
No-Load (Mutual Fund)
Open-End Funds
Open Market Operations
Option
Out-of-the-Money
Passively-Managed Funds
PEG Ratio
Philadelphia Fed Index
Preferred Stock
Premium (Options)
Price-to-Book
Price-to-Earnings
Price-to-Sales
Primary Dealers
Producer Price Index (PPI)
Purchasing Managers' Index
Put (Option)
Ratings (Bonds)
Real Earnings
Receivership
Recession
Regional Bank
Reinvested Dividends
Repo (Repurchase Agreement)
Retail Sales
Retracement
Return on Assets
Return on Equity
Richmond Fed Survey
Roll
Russell 2000
Santa Claus Rally
S&P 500
S&P 500 Futures
Same-Store Sales
Securities
Sell-Side
Share-Classes
Shareholder Rights Plan
Sharpe Ratio
Short Selling
Specialist
Special Situations
Speculative Grade (Bonds)
Spider (SPDR)
Spread
Spread Product
Standard Deviation
Standard Deviation of Returns
Step-Out/Step-In Trade
Stop Order
Straddle
Strike Price
Support
Swaps
Target Price
Top-Down Investing
Top-Line
Total Return
Trailing Stop
Treasury Bills
Treasury Futures
Treasury Notes
Treasury Securities
Treasury Bond
Triple Witching
Turnover Ratio
Value Stock
VIX (Volatility Index)
Volatility
When-Issued Trading
Whisper Number
Yield Curve
Zero-Coupon Bond