short straddle

noun

An investment position in a futures deal, where the trader places a call order and a put order at the same time on the same item, in hopes of the item remaining at the same price when the order expires, neither falling nor rising, straddling the divide, so as to reap the premiums of the unexercised call and put.

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Meanings

nounshort straddle (plural short straddles)

plural short straddles

  1. businessAn investment position in a futures deal, where the trader places a call order and a put order at the same time on the same item, in hopes of the item remaining at the same price when the order expires, neither falling nor rising, straddling the divide, so as to reap the premiums of the unexercised call and put.
Cite this entry
APA

short straddle. (n.d.). In WatkinsX Dictionary. Retrieved November 4, 2026, from https://dictionary.watkinsx.com/word/short%20straddle

MLA

“short straddle.” WatkinsX Dictionary, https://dictionary.watkinsx.com/word/short%20straddle. Accessed November 4, 2026.

Chicago

WatkinsX Dictionary, s.v. “short straddle,” accessed November 4, 2026, https://dictionary.watkinsx.com/word/short%20straddle.

Source: short straddle on Wiktionary, CC BY-SA 4.0.