(redirected from strangulation)
Also found in: Dictionary, Thesaurus, Medical, Legal, Encyclopedia, Wikipedia.
Related to strangulation: strangulated hernia


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.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved


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.

Dictionary of Financial Terms. Copyright © 2008 Lightbulb Press, Inc. All Rights Reserved.
References in periodicals archive ?
Delayed death after pressure of the neck, possible usual mechanism and implication for mode of death in manual strangulation discussed.
Reported lifetime participation in strangulation activities was 11% in the Ohio study and 6.6% in the Texas/Canada study.
The short drop usually meant death by strangulation that could last a long time.
(1) And while strangulation is not the cause of death for all domestic violence homicides, evidence of prior [non-fatal] strangulation, like that experienced by Ashanti in the years before her death, "inhabits a category all its own in domestic violence as a marker of lethality.
Another 34% used strangulation or suffocation, which has a fatality rate of about 60%.
The second charge involves the murder of 21-year-old ( Janet Taylor , who disappeared in 1974 while hitchhiking from the Stanford campus to her home in Northern California. Her body was found the next day on the side of a nearby highway, also dead from strangulation.
This workbook shows practitioners how to identify, document, assess, and treat manual nonfatal strangulation. It discusses definitions of strangulation, the anatomy of the neck, related injuries and conditions, visible injuries, signs and symptoms, lethality, and tests and treatment.
Hernias are chronic in nature and typically quiescent until they result in obstruction or sepsis secondary to luminal strangulation. The patients in both cases Zheng et al.
Schweizer is the subject of an arrest warrant issued by a circuit court in Broward County, Florida after he was charged with felony battery by strangulation.
She was originally buried without an autopsy - but when exhumed a cause of death was identified as strangulation. It was widely reported that she had been brought back to Pakistan for an arranged marriage, but refused.
A MUM may have died from "manual strangulation", a court has heard.