In options trading, a "strangle" refers to an options position that consists of both a call and a put option on the same underlying stock, with the contracts having identical expirations but differing ...

Investors who believe Palantir stock could keep moving higher or correct lower may want to consider a long strangle.

Adam Hayes, Ph.D., CFA, is a financial writer with 15+ years Wall Street experience as a derivatives trader. Besides his extensive derivative trading expertise, Adam is an expert in economics and ...

The strangle is an options strategy that you create out of multiple options contracts to maximize your upside while minimizing your risk. With the strangle, you generally believe you know which ...

Do you believe a stock is set to move sharply in the next few days, weeks or months? You don’t have to guess the direction if you initiate a strangle or a straddle. These options trading strategies ...

The short strangle is a two-legged option spread meant to capitalize on a period of stagnant price action for the underlying stock. The strategy involves the sale of two out-of-the-money options -- ...

Investopedia contributors come from a range of backgrounds, and over 25 years there have been thousands of expert writers and editors who have contributed. Thomas J. Brock is a CFA and CPA with more ...

Many are looking at this market, with the S&P 500 (SPX) trading up at the 1520 level, and saying it seems to be completely overbought. However, others have spent their time looking at the numbers and ...

A strangle option strategy involves the simultaneous purchase or sale of call and put options in the same stock, at different strike prices but with the same expiration date. A long strangle is ...