> For the complete documentation index, see [llms.txt](https://catpull-1.gitbook.io/hegic/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://catpull-1.gitbook.io/hegic/buying-options/high-volatility-options/straddle.md).

# Straddle

High profits if the price rises or falls sharply during the period of holding

<figure><img src="https://2853328886-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2F9IfN0SsphIpKDZ52Rrsw%2Fuploads%2FzJkaKZvU6Ca865SYtl1Q%2F1_RbD8nD2rvmRW02eoCbsrJQ.webp?alt=media&amp;token=3de95fea-245a-4903-940c-d52d3dd967c0" alt=""><figcaption></figcaption></figure>

**The Straddle** is a strategy that helps you to make a bet on a volatility rise: that the price of an asset will soon increase or fall (any direction). The Straddle consists of **a call option and a put option with the same strike price and the same expiration.**

Instead of being bullish or bearish about the future price, you can have the following reasoning when buying it: “**I don’t care what the price will be, but if it changes significantly in either direction during the period of holding the Straddle, I win.”**

**The Straddle has a limited cost and unlimited potential profit.**

{% hint style="info" %}
Buying one Straddle is equal to buying two ATM options - one ATM call and one ATM put.
{% endhint %}