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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 ?
Our case is the first case of dislocation of the symphysis of the hyoid bone following strangulation in survivors.
Treatment of penile strangulation caused by constricting devices.
A child can get in trouble easily and silently and be at risk within seconds of strangulation and death.
Strangulation has also been reported as the cause of death in more than 50% of all playground fatalities in children.
When the final conclusion is that this death was caused by manual strangulation, I would not expect the first word to be 'inconclusive'," he told the Sunday Mercury.
24 /PRNewswire-USNewswire/ -- A new report by WATCH shows a significant upward trend statewide in charges brought against perpetrators of domestic violence as a result of the state's felony domestic strangulation law enacted in 2005.
Her body was found partially clothed with strangulation marks, a hallmark of the slayings that persisted until the April 6, 1998, slaying of 37-year-old Brenda Bries, strangled in a portable outhouse on Gladys Avenue in South Los Angeles.
Consumer Product Safety Commission (CPSC) has received reports of about 200 strangulation deaths involving cords and chains on window coverings.
VALLEY VILLAGE - Officials posted a reward of up to $50,000 Wednesday for information about the strangulation of a 38-year-old man, whose body was found outside an apartment complex.
We continue to lose children in tragic incidents due to entanglement and strangulation in older window covering cords.
WINNETKA - A man was held on $1 million bail Monday on suspicion of murder in the strangulation of his 74-year-old mother, police said Monday.
Children continue to die from strangulation in window cords despite recent industry efforts to offer "safety kits" for corded window coverings such as mini-blinds or shades.