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Straddle and Strangle

Staddle and Strangle are called as "Combo" options. They consists of two options of same market side, same quantity, same expiry but different option type. If the strike price is the same, it is called Straddle, and if different, Stangle. However, in ISDA documentation for OTC derivatives, no such distinction is made, and both are called staddles. Staddle and Stangles are a bet on volatility. They are NOT a bet on the price direction.

Straddle

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