While it's certainly not a low-risk trade, some speculators like to implement short straddles ahead of events like earnings, when implied volatility is often pumped up. These traders are expecting ...

There are two types of straddle trades—long straddles and short straddles. The type of trade described in the section above is a long straddle, which is more common. As described above ...

The long straddle is ideal when you're not sure whether a stock is going to move higher or lower -- but you expect dramatic price action nonetheless. Maybe there's an earnings report or product ...