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strangle

strangle

2 9.9
An options trade using a call and a put with different strike prices to profit from big price moves
  • noun
  • /ˈstræŋɡl/
  • Specialized
translation icon : estrangulamiento (estrategia de opciones)
  • 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.

Examples

  • Traders often use a strangle to benefit from volatility in stock prices without needing to predict the direction.

  • Some guys are, are really, really good with straddles and strangles and, and some guys are really, really good with spread trading.

  • So we'll be looking at straddles, strangles, spreads and butterfly spreads, all those sorts of things.

  • A long strangle can be a profitable strategy for investors anticipating significant market fluctuations.

  • With a strangle options strategy, one can hold both a call and a put option to capitalize on large price moves.

How Directional

call option
  • Specialized
2 7.7
strangle
  • Specialized
2 9.9
straddle
  • Specialized
1 9.9

Surface Forms

strangle singular
strangles plural

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.