Strategy - BUY STRADDLE (details below)

• bullish
• bearish
• neutral
• volatile
  • expect prices to be very volatile
  • expect prices to be volatile
  • moderately expect prices to be volatile

Strategy Implementation
Call option and put option are bought with the same strike price a - usually at-the-money.

Upside Potential
Unlimited Breakeven Point at Expiry
Lower point is the strike minus the two premiums paid, and the upper is the strike plus the two premiums.

Downside Risk
Limited to the two premiums paid. [If the investor would like to decrease the premium paid, a buy strangle might be interesting]

Margin
Not required

Comment
Position loses value with passage of time as time value decreases on options.