---
title: "Long Straddle — options strategy"
type: "options-strategy"
topic: "Options strategies (Indian markets)"
category: "Volatility"
outlook: "Big move expected"
complexity: "intermediate"
risk: "defined"
slug: "long-straddle"
url: "https://learn-derivatives.tapetide.com/strategies/long-straddle"
markdown_url: "https://learn-derivatives.tapetide.com/strategies/long-straddle.md"
source: "DeltaDesk by Tapetide"
---

# Long Straddle

> **In plain English:** A bet that something big happens — you do not care which way. You buy both a call and a put at the same strike. A large move either direction pays off; the danger is the price sitting still and both options decaying.

**Category:** Volatility · **Market view:** Big move expected · **Complexity:** intermediate · **Risk:** Defined

## Structure

- Buy ATM call
- Buy ATM put

## Summary

Buy an ATM call and put — profit from a big move in either direction.

## When to use it

Expecting a large move (event/result) but unsure of direction. Buy when IV is LOW.

## Profit & loss

- **Max profit:** Unlimited (both tails).
- **Max loss:** Limited to the total premium paid (if price pins the strike).

## Net Greeks profile

Long gamma, long vega, very negative theta.

## Margin

Light (net debit paid).

## Common mistakes

- Buying straddles when IV is already high (IV crush after the event).
- Underestimating the daily theta bleed.

## India example

Buy an ATM NIFTY straddle 2 days before a budget when IV is still subdued.

---

**Build it live in the [DeltaDesk Strategy Lab](https://learn-derivatives.tapetide.com/tools/strategy-lab)** — tune strikes and see payoff + net Greeks update instantly.

*Educational content only — nothing here is investment advice. Derivatives carry significant risk of loss. Tapetide is not a SEBI-registered research analyst or investment adviser.*