Definition: Strangle | Tackle Trading: The #1 rated trading education platform

Strangle

The Strangle is a neutral options strategy that involves simultaneously buying (in case of a Long Strangle) or a selling (in case of a Short Strangle) an OTM Put and a OTM Call at different strike prices, same expiration date and on the same underlying security.

STRATEGY BIAS: Neutral

STRIKE PRICES: Different

EXPIRATION DATE: Same

UNDERLYING SECURITY: Same

Long Strangle risk graph

Glossary - Strangle long strangle risk graph

Short Strangle risk graph

Glossary - Strangle short strangle risk graph

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