What is the common element in both long straddles and long strangles?

The common element in both long straddles and long strangles is that they involve purchasing options that have the same expiration date. In both strategies, an investor buys call and put options to benefit from movements in the price of the underlying asset.

In a long straddle, both the call and put options are purchased at the same strike price and expiration date, providing unlimited profit potential if the underlying asset experiences significant price movement in either direction. Similarly, in a long strangle, while the strike prices of the call and put options differ, they still share the same expiration date. This synchronized timing allows the investor to capitalize on volatility or substantial price changes in the underlying asset.

The other options presented do not accurately reflect the features of long straddles and long strangles. The selling of options or hedging strategies generally pertain to different trading strategies that do not define either of these approaches, while low volatility is actually contrary to the fundamental purpose of implementing these strategies, which thrive on high volatility. Buying options with differing underlying assets does not relate to either strategy, which focuses on the same underlying asset rather than varying ones.