A short straddle is an advanced options strategy used when a trader is seeking to profit from an underlying stock trading in a narrow range. To execute the strategy, a trader would sell a call and a put with the following conditions: Both options must use the same underlying stockBoth options must have the same expirationBoth options must have the same strike priceSince it involves having to sell both a call and a put, the trader gets to collect two premiums up-front, which also happens to be the maximum gain possible. Due to the two premiums collected upfront, beginners are often attracted to…