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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 ?
The band returned in 1979 with The Raven HHHH, a much fresher collection of songs that saw the Stranglers shedding their obsession with lady bumps and bottoms and starting a new interest in UFOs and mythology.
Since leaving The Stranglers in 1990, Hugh has released several solo albums including Wired (1993), Guilty (1997), Hi Fi (2000), Footprints In The Desert (2002), Mayday (2002), In the Dock (2003), Beyond Elysian Fields (2004) and People Places (2006).
We spend time together writing and recording tracks,'' said JJ, whose bass is considered one of the most identifiable elements of the music produced by The Stranglers, and copied by many other musicians.
And if you're not, it's your chance to discover what an awesome band The Stranglers have been for 40 years.
This DVD also contains a great combination of the first-ever feature film featuring the Stranglers.
While it was great to hear the Stranglers songs again, the first set just shaded it - and not just because of a technical glitch and Lawrence's patchy vocals on The Raven.
Stranglers bass guitarist John-Jacques Burnell said: "We have got fond memories of Liverpool.
In the case of The Stranglers, without the electric presence of Hugh Cornwell, the warm glow is replaced by dissatisfaction.
Everywhere A room full But Baz is spending little time at home at the moment, because he's in the middle of an extensive Stranglers tour, with European dates scheduled over the next month and a half.
The dry wit seen sporadically in his Stranglers days is given a much higher profile.