What is a Bull Straddle?
” As a strategy that is often employed when market conditions tend to indicate a rise in prices, the bull straddle makes good use of employing a long position with both a put and a call option. The basic idea behind the bull straddle is to time the execution of the put option and the call option so that the strategy results in taking advantage of current market conditions to create profit, without a great deal of risk of incurring a loss. . Sometime referred to as a callong straddle, the bull straddle is the opposite of a short straddle, which involves the usage of a short position with put and call options. A long position is essentially a condition of actually owing some type of security, commodity, or contract.
As a strategy that is often employed when market conditions tend to indicate a rise in prices, the bull straddle makes good use of employing a long position with both a put and a call option. The basic idea behind the bull straddle is to time the execution of the put option and the call option so that the strategy results in taking advantage of current market conditions to create profit, without a great deal of risk of incurring a loss. Sometime referred to as a callong straddle, the bull straddle is the opposite of a short straddle, which involves the usage of a short position with put and call options. A long position is essentially a condition of actually owing some type of security, commodity, or contract. Holding on to that ownership as the price or value of the security rises will help to increase the value of the portfolio, and will ultimately result in the creation of profit that can be generated at the time of sale and used to invest in other long positions. This continual pro
