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'Long Straddle' Options Strategy: CNBC Explains

Sunday, 29 May 2011 | 12:00 AM ET

Options contracts offer interesting investing strategies not possible with stocks alone. For example, if you believe a stock will move drastically either up or down, you might use a strategy called a long straddle. Salman Khan of the Khan Academy describes this strategy, which employs both put options and call options.