1. One can use a straddle strategy whenever an individual feels that the stock is likely to move in one of the directions sharply i.e. either upside or a down side.
2. These events occur before some major events or announcements which can pave the way for the stock in the times to come and is also able to clear the public misconception.
3. Straddle opportunity if utilised properly has the potential to give unlinear profit with a limited loss liability in form of loss of premium.
4. This strategy give best retrns when a stock leaves a range and breaks out in either of the direction one way.
Straddle Strategy
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