At the Money Straddle?

Generally speaking, the at-the-money (ATM) straddle will be a strike nearest to the current underlying stock price, both buying or selling one call and one put on that strike for the same expiration.

Can you lose money on a straddle?

Potential loss is limited to the total cost of the straddle plus commissions, and a loss of this amount is realized if the position is held to expiration and both options expire worthless. Both options will expire worthless if the stock price is exactly equal to the strike price at expiration.

How do you make money from a straddle?

Short Straddle—The short straddle requires the trader to sell both a put and a call option at the same strike price and expiration date. By selling the options, a trader is able to collect the premium as a profit. A trader only thrives when a short straddle is in a market with little or no volatility.