[Verse 1]
When markets swing both up and down
You need a strategy that's sound
Buy calls and puts at the same strike
Long straddle profits from big spikes
It doesn't matter which way it goes
As long as volatility shows
[Chorus]
Straddles same strike, strangles apart
Volatility plays, that's where we start
Big moves up or down, we win either way
Premium paid back when prices don't stay
Long vol strategies, catch the big swings
Straddles and strangles, profitable things
[Verse 2]
But straddles cost more, that's the trade
Two at-the-money options are paid
For cheaper entry, try a strangle
Out-of-the-money, wider angle
Call strike higher, put strike lower
Breakeven points spread even broader
[Chorus]
Straddles same strike, strangles apart
Volatility plays, that's where we start
Big moves up or down, we win either way
Premium paid back when prices don't stay
Long vol strategies, catch the big swings
Straddles and strangles, profitable things
[Bridge]
Maximum loss is premium paid
If stock price stays, your bet has frayed
Time decay hurts when nothing moves
But big events can light the fuse
Earnings, mergers, news that shocks
Send profits up as volatility rocks
[Verse 3]
Straddle's cheaper to break even
Strangle needs moves more extreme
Both strategies need time to work
Before expiration date lurks
Choose your weapon, place your bet
On volatility you'll never forget
[Chorus]
Straddles same strike, strangles apart
Volatility plays, that's where we start
Big moves up or down, we win either way
Premium paid back when prices don't stay
Long vol strategies, catch the big swings
Straddles and strangles, profitable things
[Outro]
When markets move in either direction
Volatility gives protection
Straddles and strangles light the way
For profitable options play