The straddle technique is a trading strategy used in the financial markets, particularly in options trading. It involves buying both a call option and a put option for the same asset, with the same strike price and expiration date. This approach allows traders to profit from significant price movements in either direction, whether the asset's price goes up or down. Traders typically use the straddle technique when they anticipate high volatility but are uncertain about the direction of the price movement. It is often employed before major events, such as earnings reports or economic announcements, which can lead to sharp price changes in the underlying asset, like a stock or commodity.