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The Short Straddle

Bullish, Bearish and Neutral

The short straddle is an options strategy that can be used if an investor thinks a stock, index or ETF is going to trade in a narrow range until expiration. This is an advanced strategy for experienced options traders that usually requires a margin account. The short straddle captures premium by leveraging time decay of a short at-the-money call and put. Learn the basics of this strategy in the video.