Long Straddle
You're sure a big move is coming but don't know which way — say, before major news. You bet on both sides at once: shoot up or down and you earn; stay flat and you lose the entry cost.
How the Long Straddle works
One leg pays off on the move while the other loses its premium. Profit appears once the move exceeds the total premium in either direction. Its enemy is a flat market and falling IV (theta).
Placing the strike at GEX levels
A straddle suits a negative-GEX regime (red hedging pressure, below the Gamma Flip) where moves amplify. Put the strike at the current price / Gamma Flip. Best entry is in low IV before an expected spike.
The Gamma Flip and hedging pressure are computed live in the GEX Terminal — build the straddle in the Position Builder.
When to open, the Greeks and managing the position
Open it ahead of major events — big-tech earnings, FOMC rate decisions, regulator verdicts. The ideal entry is the "calm before the storm", with historical volatility near yearly lows but a spike expected. Breakevens = strike ± total premium.
Greeks: long vega (rising IV helps both legs) and negative theta — a flat market is the enemy. Management: take profit on the first strong impulse and close early if the move never comes.
FAQ
Ahead of an expected big move (event, breakout from a squeeze), especially in a negative-GEX regime.
Capped at the total premium paid.
Build the Long Straddle on live BTC and ETH quotes in the Position Builder.
Open the Position BuilderRelated strategies
Information is for educational purposes only and does not constitute investment advice. Options trading carries high risk.