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← Options basics
ATM straddle and decay
6 min read · Educational content only, not investment advice.
The priced move
The ATM straddle is the at-the-money call plus put premium. It approximates the move the market prices until expiry.
Example: NIFTY at 24,000 with a ₹180 straddle implies roughly ±180 points priced to expiry.
Decay and expansion
Straddle premium usually decays as expiry approaches (time decay).
A rising straddle means the market expects more movement — volatility is being bid.
Key takeaways
- Straddle ≈ priced move to expiry.
- Falling straddle = decay; rising straddle = expected movement rising.