In this article I will discuss when to trade Long Straddle and Long Strangle.
When should we trade Long Straddle and Long Strangle?
When the markets are volatile (very volatile) then Long Straddles and Long Strangles work well.
What is Long Straddle trade?
A Long Straddle is a combination of buying a call and buying a put, both with the same strike price and expiration. Together, they produce a position that should profit if the stock makes a big move either up or down. I have written in details about Long Straddle here that you can read.