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To truly gain from a straddle, an investor must have a better estimate of volatility than...

To truly gain from a straddle, an investor must have a better estimate of volatility than everyone else.​

True

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To truly gain from a straddle, an investor must have a better estimate of volatility than everyone else.​

TRUE

Many traders adopt the method using the straddle might be to capture the anticipated rise in implied volatility. This method attempts to profit from the increasing demand for the options themselves, which increases the implied volatility component of the options themselves. Therefore, the investor must need to have a better estimate of volatility.

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