Strangle Options Trading Strategy

A strangle options trading strategy can be long or short. A long strangle is similar to a straddle in that you buy a call and put with different strike prices. In the case of a long strangle you hope for the underlying to make a drastic move in either up or down directions.

In the case of a short strangle you do not want the underlying security to make any moves. A short strangle involves writing an out-of-the-money call and selling an out-of-the-money put both with the same underlying stock and expiry date.


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