# Long Straddle

> Does the move have to be bigger than the one the market has already priced in?

| Property | Value |
| --- | --- |
| Market phase | Big move expected, direction unknown (event, coiling at the edge of a range) |
| Driver | Gamma / realised vol - you get paid on the size of the move, whichever way it goes, Vega - you get paid on a change in implied volatility |
| Direction | direction-neutral, needs a big move |
| Max profit | unlimited to the upside, strike minus debit to the downside |
| Max loss | the debit paid |
| Risk defined | Yes |
| Legs | +1 Call @K; +1 Put @K |
| Approval level | 2 (Long calls and puts, cash-secured puts) |
| Experience | Intermediate |

## Formulas

```text
Break-even: K - D / K + D
Max profit: unlimited to the upside, strike minus debit to the downside
Max loss: D
```

## Legs

1. +1 Call @K
2. +1 Put @K

[Read this strategy on the web](https://www.mindtrajour.com/en/academy/strategies/long-straddle)