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Straddle vs Strangle (Options Volatility Trades) | Key Differences + When to Use
Two volatility trades, two different cost/move requirements. A straddle is an at-the-money call + at-the-money put—it’s more expensive, but it can start working with less movement because both legs are close to the money. A strangle is an out-of-the-money call + out-of-the-money put—it’s cheaper, but it needs a bigger move to pay off ...
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