Complete Guide to Options Trading - 14. The Straddle

As a trader, you'll have plenty of trades where you do a lot of homework and have conviction that a trade will work, but it goes against you. This is the obvious risk of trading directional trades, where you are expecting a stock to either go up or down and trade that with options. But you can also use certain option strategies that don't depend on the market direction and work regardless of how the market moves. Such option strategies are known as “delta neutral” strategies. In this video, we look at one such delta neutral strategy—the straddle. Also, just because these strategies make money regardless of the market move doesn't mean they are without risks. We also look at the risks of delta neutral strategies. To learn more about the straddle, check out these chapters: https://zerodha.com/varsity/chapter/the-long-straddle/ https://zerodha.com/varsity/chapter/the-short-straddle/