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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 sterile nature of the current music industry makes him even more determined to continue with The Stranglers, who are working on a follow-up to 2012's Giants, the band's best and most acclaimed album since the mid-Eighties.
The Stranglers, with special guests Therapy, will be bringing their Definitive Tour to the O2 Academy, Birmingham on Saturday, March 17.
If you go to a Stranglers concert I don't think you would expect to listen to an hour and a half of Golden Brown.
Stranglers is a co-production of Earwolf, audio production house Northern Light Productions and Investigation Discovery.
An annual example is green pole beans; two perennial ones are Clinton grapes and strangler figs.
Sunday's gig at The Lowry will be a mixed acoustic show featuring Stranglers songs, Cornwell solo songs, plus members of his online fanbase, PledgeMusic group, can choose encores so there will be a few surprises too.
The Stranglers play the 02 Academy Newcastle tonight.
Songs composed by such artists as Neil Young, the Stranglers, Eminem, Depeche Mode, Slayer, Lou Reed, John Lennon/Paul McCartney, and others are taken apart and put back together darkly, gently, and in an uncompromising fashion.
LIVE SOON The Stranglers - O2 Apollo - March 31 One of the UK's most exciting, credible and influential British groups The Stranglers return this year with a huge UK tour for March 2018.
PUNK legends The Stranglers are gearing up for their annual UK tour with a stop in Cardiff.
March The Stranglers, O2 Academy Newcastle It was never meant to be like this.
Although cemented into the pantheon of definitive British punk bands, there's a lot more to the Stranglers than mere sneer and safety pins.