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The Straddle Strategy involves buying both a Call Option and a Put Option with the same strike price and expiry date, making it ideal for volatile markets. This strategy profits from large price movements in either direction. If the market moves significantly, one option becomes profitable, covering the cost of both premiums and yielding a net gain. However, if the market stays flat, the total premium paid is lost. It’s an effective approach for uncertain conditions like elections or economic announcements.
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