Short Straddle Strategy
NeutralAdvancedUnlimited Risk
Sell both calls and puts at the same strike to maximize premium in low volatility markets.
How It Works
1
Sell ATM Call: Receive premium for selling call option.
2
Sell ATM Put: Receive premium for selling put option.
3
Profit Zone: Keep both premiums if stock stays near strike.
Key Metrics
Max Profit:Total Premium Received
Max Loss:Unlimited
Upper Breakeven:Strike + Total Premium
Lower Breakeven:Strike - Total Premium
Best Case:Stock pins at strike