Options - Strangles

The Hindu Business Line  Nov 8  Comment 
After the sharp fall on Friday, the short-term outlook for Dr Reddy’s Laboratories (₹3,650) has turned negative.Immediate support is at ₹3,479 and the next is at ₹3,335. A close above ₹3,6...
The Hindu Business Line  Aug 30  Comment 
The outlook for Cairn India (₹145.2) will remain negative as long as the stock trades below ₹188. The stock finds immediate support at ₹125 and resistance at ₹158. We expect the stock to m...
The Hindu Business Line  Aug 23  Comment 
Though the long-term outlook remains positive for Nifty (8,299), it could swing wildly in the medium term. Having failed to sustain 8,350 levels, it is headed for a fall to 7,965 and further selli...
Wall Street Journal  Aug 7  Comment 
There is a false sense of security among some investors that China will eventually get the hang of this stock market bailout thing.
The Hindu Business Line  Jun 7  Comment 
Despite the recent fall, the outlook would remain positive for the stock of IRB Infrastructure Developers (₹233), as long as it stays above ₹216. While a close below ₹199 will make the out...
The Hindu Business Line  May 17  Comment 
The long-term outlook for NTPC (₹136.1) remains negative. However, in the short term, it is likely to move in a narrow range. It finds near-term resistance at ₹142 and support at ₹126 and...
The Hindu Business Line  Apr 12  Comment 
The long-term outlook for L&T remains positive. It finds immediate resistance at ₹1,796 and the next crucial one at ₹1,828. A close above ₹1,828, can trigger a fresh rally in L&T a...
The Hindu Business Line  Apr 5  Comment 
The long-term outlook for Bank Nifty (18,617.8) is positive and it can reclaim its peak of 20,907, as long as the index holds above 16,060. But, a close below its immediate support of 17,5...
The Hindu Business Line  Feb 8  Comment 
The medium-term outlook for BHEL is positive, but in the short term, the stock is expected to move in a narrow range of ₹215 and ₹290. Key resistances are at ₹329 and ₹380. A close above t...
The Hindu Business Line  Jan 11  Comment 
The short-term outlook remains positive for Infosys (₹2,073.6) as long as it trades above ₹1,906. The stock is likely to continue its up move above this level. A close below ₹1,906 could drag the...


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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


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

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