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Strangle

Options & Volatility

A strangle is an options strategy where the investor holds a position in both a call and a put option with different strike prices but the same expiration date and underlying asset.

Like a straddle, a strangle profits from a big move in either direction — but it's cheaper because the call and put are out-of-the-money. The tradeoff: the stock needs to move even more to be profitable.

Further reading: Wikipedia

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