What is a strangle in trading? A strangle is a neutral options strategy that combines a call and put option with different strike prices and the same expiration date. How does a strangle make money? A long strangle is profitable when the price of the underlying moves sharply in either direction prior to expiration, to a point where the trader can sell the strangle for more than what they bought it for up front. A short strangle is profitable if the price of the underlying remains within the strike prices at expiration, where the trader keeps the credit received up front for selling the strangle.
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