verb, -dled, -dling, noun | 1. | to walk, stand, or sit with the legs wide apart; stand or sit astride. |
| 2. | to stand wide apart, as the legs. |
| 3. | to favor or appear to favor both sides of an issue, political division, or the like, at once; maintain an equivocal position. |
| 4. | to walk, stand, or sit with one leg on each side of; stand or sit astride of: to straddle a horse. |
| 5. | to spread (the legs) wide apart. |
| 6. | to favor or appear to favor both sides of (an issue, political division, etc.). |
| 7. | an act or instance of straddling. |
| 8. | the distance straddled over. |
| 9. | the taking of a noncommittal position. |
| 10. | Finance.
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straddle
In futures, the purchase of a contract for delivery in one month and sale of a contract for delivery in a different month on the same commodity.
In options, the purchase or sale of both a call and a put, generally with the same strike price and expiration date. The buyer of a straddle benefits from large price fluctuations in the underlying asset, while the seller of a straddle, who collects the premiums, benefits from small price changes in the underlying asset.