In stock trading, a straddle is an options trading strategy where an investor simultaneously buys a call option and a put option for the same underlying stock at the same strike price and expiration date. This allows the investor to profit from a significant move in the price of the stock, regardless of the direction of the move.

The idea behind a straddle is that the investor expects a large move in the stock price but is unsure of the direction of that move. By purchasing both a call and a put option, the investor can profit if the stock price moves significantly in either direction. However, if the stock price remains relatively stable, the investor may experience a loss on both options.

A straddle can be a useful strategy for traders who anticipate significant volatility in the stock price but are unsure of the direction of the move. It can also be used as a hedging strategy to protect against potential losses from a significant move in either direction.

A straddle in stocks is an options trading strategy that involves buying both a call option and a put option for the same underlying asset, with the same strike price and expiration date. This strategy is typically employed when an investor anticipates significant volatility in the stock's price but is unsure of the direction of the movement.

Pros:

Profit from Volatility: Can yield profits from large price movements in either direction.
Limited Loss: The maximum loss is limited to the total premium paid for the options.

Cons:

High Cost: Purchasing both call and put options can be expensive due to the combined premiums.
Time Decay: Options lose value as they approach expiration, which can erode profits if the expected volatility does not materialize promptly.