The best brokers for options trading can help you identify ... When to use it: A short straddle can be a good strategy when you expect the stock to stay in a narrow range until the options expire ...

A long straddle is an options strategy that involves buying at-the-money puts and calls for the same security with the same expiration date in hopes of profiting off of expected price volatility ...

To initiate a long straddle, you will simultaneously buy to open a call option and a put option on the same underlying stock. Both options will have the same strike price and the same expiration date.

In the best-case scenario ... plenty of risk involved with a short straddle, which is why these premium-selling strategies are reserved for experienced option traders with margin accounts.