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What is straddle in stocks?
In stock trading, a straddle is an options trading strategy where an investor simultaneously buys a call option and a put option for the same underlying stock at the same strike price and expiration date. This allows the investor to profit from a significant move in the price of the stock, regardless of the direction of the move.

The idea behind a straddle is that the investor expects a large move in the stock price but is unsure of the direction of that move. By purchasing both a call and a put option, the investor can profit if the stock price moves significantly in either direction. However, if the stock price remains relatively stable, the investor may experience a loss on both options.

A straddle can be a useful strategy for traders who anticipate significant volatility in the stock price but are unsure of the direction of the move. It can also be used as a hedging strategy to protect against potential losses from a significant move in either direction.

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