Chapter 07 · Section 7.1

Short Straddle Question 1

You are short the September 40 straddle with the stock at 40. You:

• a) are long and want the market to rally.
  No.
  b) are short and want the market to fall.
  c) are neutral and want the market to sit.
  d) are neutral but want the market to move in either direction.