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Trading Terms

Strips

One strategy that investors often use in the world of finance is known as a "straddle". This involves purchasing a call option and two put options for the same security, all with the same exercise price and expiration date. Essentially, this allows the investor to hedge their bets and potentially profit from both upward and downward movements in the security's price. It's a common tactic for those looking to manage risk and maximize returns in the market.
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