LONG STRADDLE.
Example  :Suppose Nifty is at 4450 on 27th April. An
investor, Mr. A enters a long straddle by
buying a May Rs 4500 Nifty Put for Rs. 85 and
a May Rs. 4500 Nifty Call for Rs. 122. The net
debit taken to enter the trade is Rs 207, which
is also his maximum possible loss.

When to Use: The investor thinks that
the underlying stock / index will
experience significant volatility in the
near term.
Risk: Limited to the initial premium
paid.
Reward: Unlimited
Breakeven:
• Upper Breakeven Point = Strike Price
of Long Call + Net Premium Paid
• Lower Breakeven Point = Strike Price
of Long Put - Net Premium Paid.