Core Concept - A short straddle is an advanced options strategy aimed at profiting from a stock trading within a narrow range, involving the sale of both a call and a put option to collect two premiums upfront, which represents the maximum gain possible [1][2]. Strategy Overview - The strategy starts with a net credit, allowing profit if the stock trades between the lower and upper break-even points [3]. - The strategy is particularly appealing to beginners due to the upfront premiums, but it carries significant risks, especially during major market events [2]. Stock Examples - The Barchart Short Straddle Screener identifies stocks with a market capitalization greater than $40 billion and total call volume exceeding 2,000, highlighting potential trades in popular stocks like UPS, JD, DIS, OXY, UBER, PLTR, and AAPL [4]. UPS Short Straddle Example - For UPS, the trade involves selling the $85 strike call and the $85 strike put with an October 17 expiry, yielding a premium of $559, which is the maximum profit. The maximum loss is theoretically unlimited, with lower and upper break-even prices at $79.41 and $90.59, respectively [7]. DIS Short Straddle Example - For Disney, the trade involves selling the $115 strike call and the $115 strike put, also with an October 17 expiry, generating a premium of $644 as the maximum profit [10].