---
title: "Strangle "
description: "1. Long StrangleOverviewLong strangle is an options strategy where you buy a call and a put with different strike prices but the same expiration date. This strategy profits from large price movements in either direction, and often uses out-of-the-money options to reduce costs.FeaturesComponentsProfit sourceUnderlying priceSourceRiseCall value increaseFallPut value increaseCase studyLet's imagine a made-up company cal"
slug: "strangle"
locale: "en"
region: "hk"
region_label: "Hong Kong"
url: "https://longbridge.com/hk/en/support/topics/optionstrading/strangle.md"
updated_at: "2025-10-10T08:13:49.000Z"
category: "optionstrading"
category_title: "Options trading"
---

# Strangle 

[Table of Contents](https://longbridge.com/hk/en/support/toc.md)

## 1\. Long Strangle 

-   **Overview**

Long strangle is an options strategy where you buy a call and a put with different strike prices but the same expiration date. This strategy profits from large price movements in either direction, and often uses out-of-the-money options to reduce costs.

-   Features

![](https://pub.pbkrs.com/uploads/2025/94a0ec5557cf920f93ebb46736b619f4)

-   Components

![](https://pub.pbkrs.com/uploads/2025/083129f8a5179c05988b90bbeafeed4a)

-   Profit source

Underlying price

Source

Rise

Call value increase

Fall

Put value increase

-   Case study

Let's imagine a made-up company called TECH.

Right now, TECH's stock price is $100 per share. With its earnings report approaching and significant market disagreement on future price direction, you anticipate the stock will experience a large price movement but are unsure of the specific direction, so you decide to use a Long Strangle strategy.

You buy one Call option with a strike price of $110, paying a premium of $3 per share. Simultaneously, you buy one Put option with a strike price of $90, paying a premium of $2 per share.

![](https://pub.pbkrs.com/uploads/2025/b4671eb11f6247db052df9b5ca068a10)

## 2\. Short Strangle 

-   Overview

Short strangle is an options strategy where you sell a call and a put with different strike prices but the same expiration date. This strategy profits when the asset’s price stays near the strike price.

-   Features

![](https://pub.pbkrs.com/uploads/2025/fbcff42abb4b19b00d38b8ae677f5310)

-   Components

![](https://pub.pbkrs.com/uploads/2025/e229e0e2412f33de971894e7fa5fd24e)

-   Profit source

Underlying price

Source

Rise

Premium from out-of-the-money calls

Fall

Premium from out-of-the-money puts

-   Case study

Let's imagine a made-up company called TECH.

Right now, TECH's stock price is $100 per share. Given its recent low volatility in a stable market environment, you think the stock price will remain stable in the near future, so you decide to use a Short Strangle strategy.

You sell one Call option with a strike price of $110, receiving a premium of $3 per share. Simultaneously, you sell one Put option with a strike price of $90, receiving a premium of $2 per share.

![](https://pub.pbkrs.com/uploads/2025/768b0b0fb7dbb7b0b4e22bb470ea5fa7)

---

> **Disclaimer**: This article is for reference only and does not constitute any investment advice. Content provided by [Longbridge](https://longbridge.com).