<p><strong>Straddle</strong> is an options strategy involving the purchase of both a call and a put with the same strike price and expiration date.</p>
<p>Straddles are used when traders expect high volatility in the underlying asset's price. They profit if the price moves significantly in either direction. For example, if an investor believes that a company's earnings report will cause its stock price to fluctuate greatly, they might buy a straddle to capitalize on potential price increases or decreases.</p>