Value-Trades

Long Straddle Strategy: Real Trade Example


Real Example (July 2025)

A long straddle involves buying both a call and a put at the same strike price and expiration. It's ideal for traders expecting a large move in either direction.
  • Stock: XYZ Corp
  • Outlook: Expecting high volatility
  • Setup: Buy 1 XYZ $100 Call @ $4.00; Buy 1 XYZ $100 Put @ $3.50
  • Total Cost: $7.50 ($750 per contract)
  • Max Loss: $750
  • Max Gain: Unlimited (upside) or substantial (downside)
  • Breakeven: $107.50 (upside) and $92.50 (downside)

Outcomes

Stock Price at Expiration Call Value Put Value Total Value Profit/Loss
$85 $0 $15 $15 +$750
$100 $0 $0 $0 -$750
$115 $15 $0 $15 +$750

Compare With Long Strangle Strategy →

Learn Long Strangle

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