What is the term for strategies that are unaffected by market direction?

Market Forward Delta Neutral Directional Bets Market Regression

What is the maximum potential loss in a long straddle strategy?

Unlimited Determined by market volatility Equal to the net premium paid Dependent on the strike price

What is the key factor that determines the success or failure of a long straddle?

Market direction Stock price at expiry Volatility Time decay

What happens to the cost of a long straddle when volatility increases?

It decreases It remains unchanged It increases It fluctuates unpredictably

What is the recommended approach to trading long straddles around major market events?

Avoid trading straddles during events Trade straddles based on general market expectations Trade straddles only if volatility is high Trade straddles when your assessment of the event's outcome differs significantly from market expectations