A Long Straddle is an options strategy in which a trader speculates on an increase in volatility and large increase or decrease in the underlying stock price. A Straddle is similar to a Strangle in that the trader buys both a call and a put; however unlike a Strangle, a Straddle uses the same strike for the contracts. So, if a stock is trading at $100, a trader wanting to open a Straddle would purchase one $100 put contract and one $100 call contract of the same expiration date. The goal of this position is to capitalize on large movements either up, or down, in the underlying stock.