Volatility Strategy
Strangle Calculator
Calculate potential profit and loss for strangle positions. Similar to straddles but with different strike prices, making them cheaper to enter.
VolatileLimited RiskUnlimited Reward
A long strangle involves buying an OTM call and OTM put. Cheaper than a straddle but requires a larger move to profit. Unlimited profit potential with limited risk.
Strangle Configuration
Current price: $100.00
Call Option (OTM)
Put Option (OTM)
Payoff at ExpirationStock Price vs Profit/Loss
Current: $100.00
Breakeven: $89.00, $111.00
Max Profit
Unlimited
Max Loss
$600.00
Trade Summary
Net Debit$600.00
Max ProfitUnlimited
Max Loss$600.00
Breakevens$89.00, $111.00
Total Premium
$600.00
Strike Width
$10.00
Lower Breakeven
$89.00
Upper Breakeven
$111.00
Understanding Strangles
A strangle is similar to a straddle but uses out-of-the-money options at different strike prices. This makes it cheaper to enter but requires a larger price move to profit.
Strangle vs Straddle
Strangle Advantages
- • Lower cost to enter
- • Wider profit zone for short positions
- • Less premium at risk
Strangle Disadvantages
- • Requires larger move to profit
- • Lower probability of profit (long)
- • Both options start OTM
Key Formulas
Upper Breakeven
Upper BE = Call Strike + Total PremiumLower Breakeven
Lower BE = Put Strike - Total PremiumRelated Calculators
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