Buying both a call and a put at the same strike price. You profit from a big move in either direction. The challenge is that you're paying double premium, so you need a significant move to overcome the cost.
Unlimited on upside, substantial on downside
Total premium paid for both options
Strike ± Total premium paid (two breakeven points)
Long 1 ATM Call + Long 1 ATM Put (same strike, same expiry)
Unlimited profit on upside, substantial on downside. Risk limited to total premiums. Hurt by time decay and IV crush.
Before earnings, FDA decisions, or other events where you expect a major move but are unsure of the direction. When implied volatility is low relative to expected realized volatility.