Straddle

Straddle is an options strategy involving the purchase of both a call and a put with the same strike price and expiration date.

Straddles are used when traders expect high volatility in the underlying asset's price. They profit if the price moves significantly in either direction. For example, if an investor believes that a company's earnings report will cause its stock price to fluctuate greatly, they might buy a straddle to capitalize on potential price increases or decreases.