If you're holding both a call and a put on the same stock, that's your classic Straddle strategy. The goal with a Straddle is to profit from big price swings in either direction – up or down. If the stock makes a big enough move, you can actually make money on both sides. In fact, with enough volatility, it’s possible to score profits on both the call and the put.
I’ll break down how that works with a real-life exa...