Straddle Options Strategy: How to Consistently Make Profits

The best part about trading neutral options strategies is that you can be undecided about going bullish or bearish on your latest crypto options trade and still profit. This is thanks to the potential rise in implied volatility (IV) that comes from an impending catalyst that may cause a larger-than-expected move in the price of the coin or token. Interested in learning about such options strategies that let you play both sides? 

Enter the straddle strategy — a neutral options scheme that lets traders leverage on upcoming volatility and earn a tidy profit, regardless of whether the overall price goes up or down. From the setting up of a straddle options strategy to referencing an example of executing the straddle strategy in the crypto market, here’s all you need to know when it comes to unraveling the secrets of making a profit with long and short straddles in the crypto options market.

Key Takeaways:

• A straddle is a price-neutral options strategy that involves the trading of call and put options for an asset, with the same strike price and expiration date.
• The straddle options strategy allows traders to take advantage of changes to an underlying asset’s implied volatility.
• Crypto options traders can choose from two types of straddle strategies: long and short.

What Is a Straddle Options Strategy?