How does the Long Option Straddle deliver its hedge outcome? If the underlying asset's price increases, the call option will generate profits, and if it increases, the put option will generate profits. However, if the price remains relatively stable, the investor may experience a loss as the premiums paid for the options expire worthless. If the underlying asset's price increases, the call option will generate profits, and if it decreases, the put option will generate profits. However, if the price remains relatively stable, the investor may experience a loss as the premiums paid for the options expire worthless If the underlying asset's price increases, the call option will generate profits, and if it decreases, the put option will generate profits. However, if the price is significantly volatile, the investor may experience a loss as the premiums paid for the options expire worthless. If the underlying asset's price decreases, the call option will generate profits, and if it decreases, the put option will generate profits. However, if the price remains relatively stable, the investor may experience a loss as the premiums paid for the options expire worthless