All termsOptions StrategiesStart here
Long Strangle
A long strangle typically involves buying an OTM put and an OTM call with the same expiration. Market view The trader expects a sufficiently large move in either direction.
Why it matters to you
It may cost less than a comparable long straddle because both options can be OTM. However, the underlying generally needs to move further before the strategy becomes profitable at expiration.