(redirected from choke)
Also found in: Dictionary, Thesaurus, Medical, Legal, Idioms, Encyclopedia, Wikipedia.
Related to choke: Choke valve


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 ?
Giraffe Choke "Technique Gear" is an all-encompassing MMA brand.
6 mPh, and any slight drag or failure of the skirt vanes to equally deploy, can cause hanging up on a burr on the choke or to other factor.
If your shotgun's barrel has screw-in choke tubes, you may want to use a more open choke for shooting slugs.
Out of 15 cows in six cases, choke was at pharyngoesophageal junction.
IMI Critical Engineering's Mike Semens-Flanagan explained: "Our detailed research has confirmed what we already suspected - that a 'one size fits all' approach for choke valves for the oil and gas sector is not a possibility due to the vastly differing operating conditions.
Going back to the idea that choke is the difference between nominal bore size and choke constriction, here's a practical example.
FDIC Chairman Grilled Over Operation Choke Point : Oversight and Investigations Subcommittee chairman challenges Gruenberg's leadership in heated hearing exchange.
conducted hearings and issued a report titled: "The Department of Justice's 'Operation Choke Point': Illegally Choking Off Legitimate Businesses?
Slender people do not choke at the same rate as heavy people, because they do not shove food down their gullets with the same insistence.
The CEO added that the six choke will be its initial production choke once the pipeline is charged.
Industry executives expect the acquisition to help Chilisin vault to major league of power-choke suppliers in mainland China, posing challenges to Delta Electronics, which has commanded 80% of the market for chokes used in laptops.
Construction either as single-conductor chokes, single-phase individual chokes, 3-phase choke modules or LC filters.