Options - Strangles

RECENT NEWS
The Hindu Business Line  Mar 30  Comment 
The long-term outlook for United Spirits (₹2,651.6), the latest entrant to the Nifty-50 stocks, will remain bullish as long as it stays above ₹2,108. The stock finds immediate resistance at ₹2...
The Hindu Business Line  Mar 2  Comment 
Tech Mahindra (₹1,870): The medium and long-term outlook will remain positive for Tech Mahindra. Only a close below ₹1,550 will negate the current bullish trend. After a sharp run-up, we...
The Hindu Business Line  Jan 11  Comment 
YES Bank (Rs 342.9): The immediate outlook for the stock is neutral, with a negative bias. The stock is likely to move in the Rs 270-Rs 385 range in the medium term. It finds immediate supp...
FX Street  Oct 18  Comment 
Sell December Euro Option Strangles  ****There is substantial risk of loss in trading futures... For more information, read our latest forex news and reports.
The Hindu Business Line  Sep 14  Comment 
Jaiprakash Associates (Rs 39.5): The long-term outlook for Jaiprakash Associates remains negative till it stays below Rs 74.5. The stock is currently trading at a crucial level. It finds im...
The Hindu Business Line  May 18  Comment 
Reliance Industries (Rs 834.4): The stock of Reliance Industries has been moving in the Rs 700-1,000 range for quite sometime. In the recent Nifty rally, Reliance was among the laggards. If...
The Hindu Business Line  Apr 27  Comment 
Bank Nifty (12,533.1): Bank Nifty is ruling at crucial level. It has immediate support at 12,130 and resistance at 12,755. If it sustains the current level, it has the potential to breach i...
The Hindu Business Line  Apr 6  Comment 
Renewed fears of early general elections, concerns over Q4 corporate earnings and weak global cues led to sharp decline in the Nifty last week. It rose to a weekly high of 5,754 on Tuesday after P...
The Hindu Business Line  Feb 2  Comment 
HDIL (Rs 78): The stock tumbled sharply last month. HDIL (Housing Development & Infrastructure Ltd) now finds crucial support at Rs 66.20 and a close below that has the potential to tak...
The Hindu Business Line  Jan 19  Comment 
Traders can initiate a long strangle strategy in Nifty options expiring on February 28.This strategy can be initiated by buying Nifty 6,200 call and Nifty 5,800 put for the February seri...
The Hindu Business Line  Jan 19  Comment 




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Long Strangle

A volatile options strategy which involves buying out of the money call options and put options simultaneously in order to profit from both a strong upwards or downwards movement.

'Pay off diagram

Image:Strange_Pay_off_diagram.jpg‎

The Long Strangle is also the cousin of the more popular Long Straddle.

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