Long Strangle

Market Terms

We don't know everything about the markets.  We're just devoted to learners.  Taken from those smarter than ourselves, here's how we define Long Strangle.

A similar strategy to a straddle but with utilizing options at different strike prices.  A strangle options strategy is achieved when an investor has a position in a call and a put option with different strike prices but with the same expiration date and underlying asset.  This covers investors who think an asset will move substantially but are unsure of the direction.  However, the strangle is only profitable if the asset does not sharply swing in price.