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A two-leg options strategy that bets on a big move in either direction, with a known, capped cost — the exact opposite side of a Short Straddle, buying instead of selling both the call and the put.

A Long Straddle combines buying one call and buying one put, both at the same strike (typically at-the-money) and the same expiry. You pay both premiums upfront. If the underlying makes a large move in either direction, one leg gains enough to more than cover the cost of both — the direction doesn't matter, only the size of the move.

Both premiums are paid upfront, and both are at risk if the underlying doesn't move enough. This is the direct opposite of a Short Straddle — same two strikes, same two option types, just buying instead of selling both.

You pay the combined premium once, upfront, and profit depends entirely on how far the underlying moves by expiry, not which direction:

1. Near the strike — maximum loss. Both options are worth little to nothing, and you lose most or all of what you paid.
2. Moving away from the strike in either direction — one leg gains value fast enough to offset the loss on the other, and once past a breakeven, the position turns profitable.
3. Well beyond either breakeven — profit grows the further the underlying moves, in either direction.

This is the "buy volatility" counterpart to Short Straddle's "sell volatility" — you're paying for the possibility of a big move, rather than being paid to bet against one.

A Long Straddle fits a view that the underlying will make a large move, but the direction is genuinely uncertain — commonly used ahead of an event with a binary or highly uncertain outcome, where a big move either way is plausible. It's most attractive when implied volatility is relatively low going into the event, since a cheaper straddle needs a smaller move to become profitable.

Suppose Nifty is trading at 24,000 with a weekly expiry coming up, and lot size is 65. You expect a big move but don't know which direction.

1. Confirm the setup. You expect a significant move in Nifty, direction uncertain.
2. Buy 1 call at the 24,000 strike, paying a premium of 145.
3. Buy 1 put at the same 24,000 strike, paying a premium of 140.
4. Calculate the net debit: 145 + 140 = 285 points, or ₹18,525 at this lot size. This is your maximum possible loss.
5. Calculate the breakevens: 24,000 − 285 = 23,715, and 24,000 + 285 = 24,285.
6. Hold the position while waiting to see how large a move actually happens.
7. See how it resolves at expiry:
   • Nifty finishes at 24,000 → both options are worth little, you lose close to the full ₹18,525 debit.
   • Nifty finishes at either breakeven → you exactly break even.
   • Nifty finishes at 25,000 or 23,000 → a real profit, growing the further past the breakeven it goes.

Quick reference for the same trade:

Based on the worked example above. Compare this to the Short Straddle page's diagram, built on the same strike — they're mirror images across the horizontal axis. Move the cursor over the chart to see profit/loss at any price.

• Time decay works strongly against this position. Every day that passes without a large move, both legs lose value from theta — this is the biggest practical risk for a Long Straddle.
• An implied volatility drop can hurt even on a correct directional call. If volatility collapses (for example, right after the event you were positioning for), both options can lose value even if the underlying does move somewhat.
• You need a move large enough to clear both breakevens' worth of premium — a modest move that would be a real win for a cheaper single-leg position can still be a net loss here.
• Index options on NSE are typically European-style and cash-settled — settled automatically at expiry.