How is a Long Strangle different from a Long Straddle?
A Long Strangle uses out-of-the-money options on both sides, making it cheaper than a straddle but requiring a larger move to profit. A straddle uses at-the-money options.
A Long Strangle buys an out-of-the-money call and an out-of-the-money put with the same expiration. It costs less than a straddle but requires a larger move to profit.
Calculate This StrategyA Long Strangle uses out-of-the-money options on both sides, making it cheaper than a straddle but requiring a larger move to profit. A straddle uses at-the-money options.
At expiration, the upside breakeven is the call strike plus the total premium paid. The downside breakeven is the put strike minus the total premium paid.
Explore similar approaches and alternatives to find the best fit for your market outlook.
Similar market outlook or risk profile
Different ways to achieve similar or opposite goals
Neutral (range-bound)
An Iron Condor combines a bull put spread and a bear call spread. It profits when the underlying stays within a defined range between the short strikes, collecting premium from all four options.
Neutral with low volatility
A Butterfly Spread uses three strikes: buy one option at a lower strike, sell two options at a middle strike, and buy one option at a higher strike. It profits when the underlying stays near the middle strike at expiration.
Easier strategies with fewer legs
Bullish
A Long Call buys one call option and gives the holder the right to buy shares at the selected strike before expiration. It is a defined-risk position that can benefit when the underlying price rises.
Bearish
A Long Put buys one put option and gives the holder the right to sell shares at the selected strike before expiration. It is a defined-risk position that can benefit when the underlying price falls.
High volatility expected
A Long Straddle buys both a call and a put at the same strike and expiration. It profits from large price movements in either direction, regardless of which way the underlying moves.
Educational use only. Options involve risk and this calculator does not provide investment advice or guarantee an outcome.