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Short Straddle

High-risk strategy profiting from low movement and time decay.

Intermediate

Market Outlook

neutral

Family

volatility

Capital Req

high

Risk Profile

low

Strategy Overview

Key characteristics and when to use

Structure

Sell Call + Sell Put (Same Strike)

Greek Profile

Delta neutral, positive theta, negative vega

Characteristics

CreditNeutralIntermediateHigh Risk

Profit & Loss Formulas

Mathematical breakdown

Max Profit

Total premium received

Max Loss

Unlimited

Breakeven

Strike ± total premium received