Are there any options strategies where you buy puts AND calls?

Question

I know about covered calls, call spreads, put spreads.

I was wondering (just out of curiosity) if there were any options strategies that involved buying a call AND a put, maybe using varying strike price and expiration dates?

Answer 1

Straddle

http://en.wikipedia.org/wiki/Straddle

Strip and Strap.

These are variants of a straddle.  A strip is two puts and one call on a stock. A strap is two calls and one put on a stock. The puts and calls have the same strike price and expiration date.

Strangle

http://en.wikipedia.org/wiki/Strangle_%2...

Guts

http://www.optiontradingtips.com/strateg...

If you include strategies where you both buy and sell puts and calls you also have

Box Spread

http://en.wikipedia.org/wiki/Box_spread

Jelly Roll

http://financial-dictionary.thefreedicti...

Iron Butterfly

http://en.wikipedia.org/wiki/Iron_Butter...

Iron Condor

http://en.wikipedia.org/wiki/Iron_condor

Iron Albatross and Iron Pterodactyl

These are variations of an iron condor in which the center strike prices are further apart.

Wrangle

http://www.yillionaire.com/topic_14.htm

Note that the names "Iron Albatross" "Iron Pterodactyl" amd "Wrangle" may not be widely accepted in the option community. Also, the terms "Strip" and "Strap" are frequently considered archaic.

Of all of these only the Jelly Roll spread uses different expiration dates by definition.

Finally, you should be aware there are thousands of different combinations of positions that are available, most of which do not have names. I currently have one spread with calls in two different months and puts in three different months at four different strike prices.

Answer 2

yes, it is called a straddle

Answer 3

Strangles

Stradles

Option Glossary;

http://www.redoption.com/glossary.php?by...

Answer 4

sure.

the most common are strip/strap and straddle/strangle