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When to Buy a Straddle In Options

 In a straddle option trading strategy, you want to take advantage of quiet market conditions or low volatility. An option trader buys a straddle when:

  • He expects a significant price change in the underlying stock

  • There is more or less an equal chance for profit whether the underlying stock goes up or down in price

  • There is low option volatility

  • There is enough time left until the option expiry date

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