a price outlier is any price that is implied to be least transacted in the future. In the past statistical measures can be used to elucidate what were past price outliers.
When a trendline breaks, the price where the line is broken is a outlier, since price move away from the point of break. Similar to support or resistance break. It can be any price that is rarely seen.
Best price outliers are found during retracements against a trend on longer timeframes.
The cost of a long straddle (premiums on both calls and puts at the same strike price, might be too high to pay given the underlying volatility. Instead, a algo is used to create a synthetic long straddle at price outlier.
If the implied premium is high enough, you could do a short straddle, and go long a synthetic straddle.
very generous of you to share the concept.... 