Straddle

A straddle is hedging strategy that involves buying or selling a put and a call option on the same underlying instrument at the same strike price and with the same expiration date.

If you buy a straddle, you expect the price of the underlying to move significantly, but you're not sure whether it will go up or down. If you sell a straddle, you hope that the underlying price remains stable at the strike price.

Your risk in buying a straddle is limited to the premium you pay. As a seller, your risk is much higher because if the price of the underlying security moves significantly, you may be assigned at exercise to purchase or sell the underlying security at a potential loss.

Similarly, if you choose to buy offsetting contracts when the prices move, it may cost you more than the premium you collected.

An optional extra blind bet, typically made by the player one to the left of the big blind, equal to twice the big blind. This is effectively a raise, and forces any player who wants to play to pay two bets. Furthermore, the straddler acts last before the flop, and may "re-raise."