[Verse 1]
When markets swing like pendulums wild
Straddles catch the chaos, reconciled
Buy a call and put at same strike price
Volatility explosion, worth the dice
At-the-money is the sweet spot zone
Where gamma builds its thunder throne
[Chorus]
Straddles need big moves to win the game
Strangles spread their wings but aim the same
Long vol strategies, direction blind
Profit when the market loses mind
Delta neutral at the start
But gamma tears positions apart
[Verse 2]
Strangles play a cheaper hunting ground
Out-the-money options, less profound
Call strike higher, put strike lower set
Butterfly formation, safety net
Wider breakeven points to clear
But smaller premium disappears
[Chorus]
Straddles need big moves to win the game
Strangles spread their wings but aim the same
Long vol strategies, direction blind
Profit when the market loses mind
Delta neutral at the start
But gamma tears positions apart
[Bridge]
Time decay becomes your bitter foe
Theta bleeds while waiting for the show
Implied vol crush after earnings day
Can drain your profits clean away
Maximum loss is premium paid
But upside profit, sky's the trade
[Verse 3]
Straddle costs more but triggers tight
Smaller moves can still ignite
Strangle cheaper, needs wider swings
But lower cost is what it brings
Both strategies bet on surprise
When sleepy markets dramatize
[Chorus]
Straddles need big moves to win the game
Strangles spread their wings but aim the same
Long vol strategies, direction blind
Profit when the market loses mind
Delta neutral at the start
But gamma tears positions apart
[Outro]
When volatility awakes from sleep
These strategies their harvest reap
Straddle tight and strangle wide
Let market madness be your guide