From Barchart:

The short straddle options strategy involves selling both a call and a put with the same strike price and expiration date. This allows the trader to profit if the stock remains within a certain price range. It is a neutral strategy that benefits from the passage of time and a decrease in implied volatility. However, it carries significant risk if the stock moves significantly in either direction. Traders should carefully consider the potential for large losses before using this strategy. It is important to have a thorough understanding of options trading before attempting a short straddle.



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