strangle
- noun
- /ˈstræŋɡl/
- Specialized
- And once again, if you're selling a strangle, you are betting that it's not going to move that much.
So we'll be looking at straddles, strangles, spreads and butterfly spreads, all those sorts of things.
- So we'll be looking at straddles, strangles, spreads and butterfly spreads, all those sorts of things.
Examples
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Traders often use a strangle to benefit from volatility in stock prices without needing to predict the direction.
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Some guys are, are really, really good with straddles and strangles and, and some guys are really, really good with spread trading.
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So we'll be looking at straddles, strangles, spreads and butterfly spreads, all those sorts of things.
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A long strangle can be a profitable strategy for investors anticipating significant market fluctuations.
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With a strangle options strategy, one can hold both a call and a put option to capitalize on large price moves.
How Directional
Surface Forms
Etymology
The word strangle in finance borrows the everyday idea of 'squeeze' from the same old root, like in string and strain. A helpful way to remember the options strangle is to imagine two strikes that 'trap' a price so you can gain from a big move, so the name suggests a 'tight' setup that reacts to large changes.