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The straddle, which is a delta neutral strategy, is best employed in high volatility markets. This strategy, like the strangle, is often referred to as a smiley face position because its risk graph takes on the shape of a smiley face due to its upward-sloping profits as shares drop towards zero or jump increasingly higher and away from current levels. The straddle makes money during extreme price moves in the underlying. A long strangle is very similar to the long straddle and, like the straddle, is know.