straddlestrad·dle /ˈstrædl/ noun [countableC]FINANCE1a combination of CALL OPTIONs (=rights to buy particular shares at a fixed price within a certain period of time) and PUT OPTIONs (=rights to sell particular shares at a fixed price within a certain period of time) relating to the same shares and with the same EXERCISE PRICE. The holder of a straddle makes a profit if the share price goes up or down by a large amount during the life of the optionsOne investor bought 400 lots of the November 425p puts and calls at 50p each to set up a straddle which would be profitable if the underlying shares move out of a small trading range.
2a situation where someone buys FINANCIAL FUTUREs or COMMODITIES FUTURES with different delivery datesStraddle investments, where an investor reduces risk by buying a contract of one month and selling the contract of another, are popular with producers and consumers of commodities.