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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 screw-in Modified choke measured 0.702-inch, for a difference of 0.019-inch, essentially the British half-choke.
Kick's designs chokes to work in the barrels of particular shotguns so some are longer and others shorter depending on how they match the bore.
As a result of these profound and personal experiences, a percentage of Giraffe Choke profits are donated to the Leukemia & Lymphoma Society (LLS) and The Alzheimer's Association.
Sabot slugs are designed to be fired in fully rifled shotgun barrels or barrels with a rifled screw-in choke tube installed and are sometimes made of copper, are often shaped like an hourglass (sometimes they are shaped like a jacketed bullet), and are surrounded by a plastic sabot.
Over a period of one year (Jan- Dec.' 2015), twenty five (25) crossbred cows presented with history of choke are reviewed in the present paper.
When coupled with the typical operating temperatures of -40[euro]centsC to +50[euro]centsC, this can create significant challenges for choke valves in the form of corrosion, in an application where sudden or catastrophic valve failure cannot be countenanced.
The whiskers from that shave can be deposited in rifling and elsewhere, such as choke threads.
Credit Union Denies Operation Choke Point Charges: Wisconsin gun shop owner believes Heritage CU unjustly closed his business account.
A My impression, as well as what I have read from other folks is that the older adjustable chokes are not quite as effective as the tubes.
One mum gave her 9-month-old a chip to eat and he began to choke.
Of course, the efficacy of a shotgun load is largely dependent on pairing it up with the right choke tube.
When the person who will be choking begins to choke you will not know it.