Hey family! Here's a brief introduction to the options straddle, a strategy I used for a quick profit last Friday on $TSLA. This strategy eliminates the need for picking a direction (aka being right) and works particularly well on stocks inside of a tight consolidation. Rather than choosing the direction you think the stock will exit the consolidation, you simply buy an ATM call & and an ATM put while both sides of the options are "quiet". When the stock finally breaks the consolidation one way or another, the working side benefits from the price-movement as well as a bump in IV (implied volatility), leaving you with a profit between the two options you bought.
Of course, it isn't quite this simple/easy and there's a lot that goes into this trade as far as the right time/stocks to place it on, but this should give you guys a good idea of the concept.
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