Is a straddle always at the money?
No. A straddle uses a call and a put with the same strike and expiration. It is often introduced as an at-the-money strategy, but it is at the money only if the shared strike is close to the current stock price.
If the stock is 80 and both options have strike 80, both legs are at the money. If the stock is 80 and both options have strike 85, the call is out of the money and the put is in the money.
So the straddle label tells you the structure. The stock price and strike tell you moneyness.
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