A long straddle is an option strategy that involves buying both a long call and a long put on the same underlying asset with the same expiration date and strike price.
The purpose of a long straddle is to profit from a very strong move in the underlying asset in any direction, usually triggered by a newsworthy event.
The risk of the long straddle strategy is that the market may not react strongly enough to the event or news it generates.
An alternative use of the long straddle strategy could be to account for the expected increase in implied volatility, which will increase if demand for these options increases.