Definition of "straddle"
  1. The buying of an equivalent quantity of both put and call options for the same underlying securities having the same price and expiration date
How to use "straddle" in a sentence
  1. Investors use a straddle strategy to hedge their investments, buying the same number of put and call options for a given security.
  2. The straddle strategy gives the buyer the right to buy or sell the underlying security at a specific price before the option expires.
  3. Using a straddle can provide a level of protection for investors in highly volatile markets.

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