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All lessonsLesson 21 · Step 1/5

Strategy: Straddles & Strangles

Long straddle

Buy an ATM call and an ATM put, same strike and expiration.

You profit if the stock moves far in EITHER direction — more than the total premium.

QQQ at $500: buy $500 call ($9) + $500 put ($9) = $18. Breakevens: $482 and $518.

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