I thought your were going to talk about a straddle options strategy.
A straddle is simply the purchase of an at-the-money call option and an at-the-money put option with the same strike and expiry date. It is a net debit transaction that a trader enters in should they expect a large move in either direction in the near future.
I did some brief work in a hedge fund on special situations, which I think is just a synonym for event-driven? It's been awhile and I'm no longer in finance, wonder if any experts have insight to share here.
A straddle is simply the purchase of an at-the-money call option and an at-the-money put option with the same strike and expiry date. It is a net debit transaction that a trader enters in should they expect a large move in either direction in the near future.
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