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Strangle

• 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
 Call
Long
Option
Put
Short
Straddle
 
 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).

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