(redirected from strangled)
Also found in: Dictionary, Thesaurus, Medical, Legal, Encyclopedia, Wikipedia.


Buying or selling an out-of-the-money put option and call option on the same underlying instrument, with the same expiration. Profits are made only if there is a drastic change in the underlying instrument's price.

Strangle Strategy

An option strategy in which one buys two out-of-the-money options (usually one call and one put) on the same asset at different strike prices. One profits from a strangle position when there is a large price movement on the underlying asset, regardless of the direction. This is because one of the options will become in the money, so long as the price moves in one direction or the other. Loss only occurs if the price of the underlying asset remains largely the same.


A strangle is a hedging strategy in which you buy or sell a put and a call option on the same underlying instrument with the same expiration date but at different strike prices that are equally out-of-the-money.

That is, the strike price for a put is above the current market price of the stock, stock index, or other product, and the strike price for a call is below the market price.

If you buy a strangle, you hope for a large price move in one direction or another that would allow you to sell one of the contracts at a significant profit. If you sell a strangle, you hope there's no significant price move in either direction so that the contracts expire out-of-the-money and you keep the premium you received.

References in periodicals archive ?
A security source said the forensic report indicated the boy was strangled with a thin wire and was struck on his right eye.
He then sat on top of her and strangled her to death.
He threw her on the bed and sat on top of her as he strangled her, the officer added.
TRAGIC J Nicola Furlong was strangled in Tokyo hotel
He then strangled and stabbed their daughter Genevieve before turning the knife on himself at the house, the inquest heard in Loughborough.
Her father took her back home assuring her that her choice would be preferred but he strangled her to death.
I believe she was murdered by someone who strangled her and not by any other method," he said.
He told police he strangled the ten-year-old with his bare hands for 20 minutes to make sure he was dead.
On Wednesday a coroner authorised the release of her body for burial after hearing she was strangled with a ligature and drowned.
A MAN who strangled his deeply religious former girlfriend in her Warwickshire flat after she told his mother he had stolen money from her, is behind bars.
A 21-year-old man has been banned from having pets for life after he strangled a five-week-old puppy.
She had been badly beaten, strangled and sexually assaulted.