DEFINITION OF 'STRANGLE' An options strategy where the investor holds a position in both a call and put with different strike prices but with the same maturity and underlying asset. This option strategy is profitable only if there are large movements in the price of the underlying asset. This is a good strategy if you think there will be a large price movement in the near future but are unsure of which way that price movement will be.

An options strategy where the investor holds a position in both a call and put with different strike prices but with the same maturity and underlying asset. This option strategy is profitable only if there are large movements in the price of the underlying asset.

**DEFINITION of 'Strangle'** An options strategy where the investor holds a position in both a call and put with different strike prices but with the same maturity and underlying asset. This option strategy is profitable only if there are large movements in the price of the underlying asset. This is a good strategy if you think there will be a large price movement in the near future but are unsure of which way that price movement will be. Thanks

Hie Roshni, **Definition of Strangle :-** - An options strategy where the investor holds a position in both a call and put with different strike prices but with the same maturity and underlying asset. This option strategy is profitable only if there are large movements in the price of the underlying asset. - This is a good strategy if you think there will be a large price movement in the near future but are unsure of which way that price movement will be.

Hiii friend.... Strangle is an option strategy where an investor holds a position in both a call and put with different strike prices but with the same maturity and underlying asset. This option strategy is profitable only if there are long movements in the price of the underlying asset. Its of Two types. 1. Long Strangle (Related to Buying) 2. Short Strangle (Related to Selling) Regards,

Hii DEFINITION OF 'STRANGLE' An options strategy where the investor holds a position in both a call and put with different strike prices but with the same maturity and underlying asset. This option strategy is profitable only if there are large movements in the price of the underlying asset. This is a good strategy if you think there will be a large price movement in the near future but are unsure of which way that price movement will be. INVESTOPEDIA EXPLAINS 'STRANGLE' The strategy involves buying an out-of-the-money call and an out-of-the-money put option. A strangle is generally less expensive than a straddle as the contracts are purchased out of the money.

Hii Roshni **STRANGLE** There are two types of strangle strategies depending on whether you buy options or sell options. Long Strangle: where you buy a Call and buy a Put Option on the same underlying,same expiry date but different strike price. Short Strangle: where you sell a Call and sell a Put Option on the same underlying,same expiry date but different strike price. There are 2 break-even points for the strangle position. The breakeven points can be calculated using the following formulae. Upper Breakeven Point = Strike Price of Long Call + Net Premium Paid Lower Breakeven Point = Strike Price of Long Put - Net Premium Paid

A strangle uses an out-of-the-money call and an out-of-the-money put, to reduce the cost. This is a lower-cost trade, but requires an even greater move to be profitable