In options trading, a "strangle" refers to an options position that consists of both a call and a put option on the same underlying stock, with the contracts having identical expirations but differing ...

Adam Hayes, Ph.D., CFA, is a financial writer with 15+ years Wall Street experience as a derivatives trader. Besides his extensive derivative trading expertise, Adam is an expert in economics and ...

Do you believe a stock is set to move sharply in the next few days, weeks or months? You don’t have to guess the direction if you initiate a strangle or a straddle. These options trading strategies ...

The strangle is an options strategy that you create out of multiple options contracts to maximize your upside while minimizing your risk. With the strangle, you generally believe you know which ...

Investors who believe Palantir stock could keep moving higher or correct lower may want to consider a long strangle.

The covered strangle combines two option strategies: a Covered Call and a Cash-Secured Put. Using IWM as an example, you already own or buy 100 shares of the ETF, sell one call short and sell one put ...

Many are looking at this market, with the S&P 500 (SPX) trading up at the 1520 level, and saying it seems to be completely overbought. However, others have spent their time looking at the numbers and ...