Strangle
|
| ||
| A "Strangle" is an option strategy that gives you the potential to profit in a trade no matter which way the stock moves. This is accomplished by purchasing out of the money options on both sides of the stock's price. | ||
|
Additional Comments:
A strangle is created by selling or buying a call and put option with the same underlying asset and with the same contract month, but with different strike prices.
For example, buying the Exxon 70 call and 60 put would be a strangle. |
Related Terms: | ||
Straddle A neutral trade that involves simultaneously buying a call and put at the same strike price ... Guts Spread An expensive strategy where the trader buys OTM calls and puts to replicate the risk profile ... Intrinsic Value This is a measure of any real value to the option. The amount by which an ... | ||
« View the Stock Market Dictionary »
Latest Financial Advice
- Index Fund vs Mutual Fund
- Roth IRA Tax Guidelines
- Impact of News on Trader’s Psychology and Market Trends
- Overconfidence Bias in Stock Trading: A Critical Analysis
- Mastering Mindfulness Practices for Traders
- Impact of Market Volatility on Individual Psychology
- Leveraging Intuition in Stock Trading: A New Approach
Free Investment Advice
| Get free stock market tips and investing advice by subscribing to our newsletter: |
* Your information will not be shared or sold. |
Recommended Reading
Categories
- Trading Basics
- Investing 101
- Investing Essentials
- Understanding the Risks
- Beginning to Trade
- Trading Strategies
- Trading Psychology
- Retirement Investing
- Personal Finance
- Advanced Trading
- Penny Stocks
- FOREX Trading
- Commodity Futures
- Stock Tips
- Going Public
- Real Estate
- Research Tools
- Stock Spam
- Reviews
- Stock Market Dictionary
RSS