What is a Bear Straddle?
” Sometimes referred to as a short straddle, the bear straddle is an investment strategy that involves taking a short position on both a put and a call option. The idea behind the approach is to maximize the chance of increasing the value of the stock portfolio in a very short period of time, usually within no more than a month. Here is some information about how a bear straddle can be arranged, and the benefits that usually result from the use of this investment technique. . In order to understand how the bear straddle works, it is necessary to understand what is meant by a straddle. Essentially, a straddle involves either the purchase or the sale of the same number of puts and calls.
Sometimes referred to as a short straddle, the bear straddle is an investment strategy that involves taking a short position on both a put and a call option. The idea behind the approach is to maximize the chance of increasing the value of the stock portfolio in a very short period of time, usually within no more than a month. Here is some information about how a bear straddle can be arranged, and the benefits that usually result from the use of this investment technique. In order to understand how the bear straddle works, it is necessary to understand what is meant by a straddle. Essentially, a straddle involves either the purchase or the sale of the same number of puts and calls. Along with selling or buying the same number of puts and calls, it is also important to make sure that all the securities involved have the same strike price and the same expiration date. The key issue to remember with a straddle is that the approach is banking on projections of how the market is going to fu
