A straddle is when I buy both put and calls at the same time. I have a volume indicator on the QQQ's, where I see big traders enter in blocks of long and short simotaneously, and then they would trade off the sideways up and down action those positions. Same thing with options, in sideways markets. You don't know where it's going, so play both positions.
Once it breaks, some sell the loss and keep the gainer, othertimes, when you think its just a st cycle, you sell the gainer, and then hold the loss when the mkt is turning, selling it off of the rebound.
I've only done it a couple of times, it takes a large position to be worthwhile. But it cuts down the risk, thats why large players use them.
imho, Jerome