Glossary

Strangle

By Rohan Fernandes, Founder · Updated 2026-08-22 · Educational reference, not investment advice

A strangle holds an out-of-the-money call and an out-of-the-money put at the same expiration. It costs less than a straddle and needs a larger move to pay, trading probability for price.

The first out-of-the-money strangle also refines the implied-move estimate the straddle anchors. On the short side, a strangle sold without protection carries undefined risk in both directions, which is why defined-risk disciplines express the same range view as an iron condor instead: the purchased wings cap the worst case at a known number.

Educational reference. Options Scanner is a software tool. It is not a broker-dealer, an investment adviser, or a fiduciary, and nothing on this page is investment advice or a recommendation to buy or sell any security. Options involve risk and are not suitable for every investor; read the Characteristics and Risks of Standardized Options before trading. Examples use hypothetical numbers for illustration only.