short straddle

English dictionary entry

Meanings

noun
  1. An investment position in a futures deal, where the trader places a call order and a put order at the same time on the same item, in hopes of the item remaining at the same price when the order expires, neither falling nor rising, straddling the divide, so as to reap the premiums of the unexercised call and put.

Word forms

short straddle short straddles
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