• Is related to the straddle. It is an option strategy where the put and call are out-of-the-money. The strangle can be long (purchased) or short (sold).

 Embedded terms in definition
 Referenced Terms
 Straddle: In option trading, buying 1 call and 1 put with the same exercise price, maturity and underlying asset. This position benefits if the price of the underlying asset turns out to be volatile. Also referred to as buying volatility. Strangle is similar to a straddle except the exercise prices of the call and put are different.Purchase or sale of an equal number of puts and calls with the same terms at the same time. Related: spreadIs an option strategy where the near-or at-the money put and call are combined to form a position. The straddle can be long (purchased) or short (sold).

<< Straight voting Strap >>

How to Ace Your First Test Managing Real Money in the Real World: As a teen, you're beginning to make some grown-up decisions about how to save and spend your money. That's why learning the right ways to manage money…right from the start…is important. Here are suggestions. More...

Never regard study as a duty, but as the enviable opportunity to learn to know the liberating influence of beauty in the realm of the spirit for your own personal joy and to the profit of the community to which your later work belongs. - Albert Einstein (1879-1955)


Copyright ©2009-2018 GVC. All rights reserved.