What is the bull Straddle?

As a strategy that is often used when market conditions tend to indicate an increase in prices, Bull Strad uses the use of a long position with PUT and the possibility of calling. The basic idea of ​​The Bull Straddle is the time to carry out the possibilities of put and the choice of calls so that the strategy uses the current market conditions to make a profit without the high risk of loss.

Sometimes referred to as Callong Straddle, Bull Straddle is the opposite of a short impact that includes the use of a short position with options and calls. Basically, a long position is that it actually owes a type of security, commodity or contract. Holding this ownership as a price or increase in safety will help increase the value of the portfolio and eventually lead to a profit that can be generated at the time of sale and used to invest in other long positions. The same process of maintaining a bull's madness allows the investor to constantly be in the state of the portfolio value.

One of the more attractive aspects of the bull growth is that the strategy tends to carry a relatively low risk for the investor. If the commodities acquired do not perform at the expected level, the investor may decide to accept two different approaches. If the certainty does not increase as quickly as expected, the investor may decide to hang on the commodity for a longer period of time to see if the expected price increase is taking place later.

The second option is to simply sell securities for more modest profit and by means of revenue to ensure new investments to create fresh bull spread. With a little luck, new investments will prove the potential of growth in the upcoming bull environment, which makes another bull more successful.