Strangle
Definition
Similar to a straddle but uses different strike prices (call higher, put lower). Cheaper but requires larger price movement to profit.
Example
Long strangle on earnings with OTM call and put. Butterfly Spread Category: Options / Strategy Definition: A limited-risk, limited-reward strategy using four option contracts at three strike prices. Profits from low
Frequently Asked Question
What is Strangle in trading?
Similar to a straddle but uses different strike prices (call higher, put lower). Cheaper but requires larger price movement to profit.
APA Citation
Last updated:
· Source: VixShield Trading Glossary — From SPX Mastery by Russell Clark
⚠️ Not financial advice. This definition is educational content from the SPX Mastery book series by Russell Clark (VixShield). Past performance is not indicative of future results. Trading options involves substantial risk of loss and is not appropriate for all investors. Always paper trade before risking real capital.