Long Strangle Strategy
High VolatilityIntermediateVolatility Play
Buy out-of-the-money calls and puts to profit from large price movements in either direction.
How It Works
1
Buy OTM Put: Purchase a put option below the current stock price.
2
Buy OTM Call: Purchase a call option above the current stock price.
3
Profit from Movement: Make money if stock moves significantly beyond either strike.
Key Metrics
Max Profit:Unlimited (large moves)
Max Loss:Total Premium Paid
Upper Breakeven:Call Strike + Total Premium
Lower Breakeven:Put Strike - Total Premium
Best Case:Large move in either direction