Volatility is low with the VIX Index closing at 14.91. Stocks with low IV Percentile like Airbnb Inc (ABNB) could be good for a Long Straddle trade. A Long Straddle involves buying a call and put with the same stock, expiration, and strike price. The strategy profits from a big move in either direction.

For the ABNB Long Straddle, using the March 20th expiry involves buying the $135-strike call and put. The premium paid is $1,955, with a maximum loss and theoretically unlimited profit. Breakeven prices are $115.45 and $154.55. Understanding implied volatility is crucial for this trade.

Mitigating risk is key for Long Straddles, as losses can occur if the stock remains flat or implied volatility drops. Position sizing and stop losses are essential to limit losses. Options trading is risky, and investors can lose 100% of their investment. Always consult a financial advisor before making investment decisions.

Read more at Barchart: ABNB Long Straddle Trade Idea