Straddle
A strategy involving the simultaneous purchase (or sale) of a call and put at the same strike price and expiration.
Explanation
A long straddle profits from large moves in either direction and is a pure volatility play. A short straddle profits when the underlying stays near the strike and collects maximum time decay. The breakevens are the strike plus/minus the total premium. Straddles are most commonly placed at the money.
Example
Buy the 150 call and 150 put on AAPL for a total of $8.00. Breakevens are $142 and $158. You profit if AAPL moves more than $8 in either direction.