Strangle Calculator
A strangle pairs an OTM call and OTM put (often long for volatility, short for range)—typically cheaper than a straddle but usually needs a larger move to pay off.
Strangle Configuration
Call Option (OTM)
Put Option (OTM)
Enter option details to see payoff diagram
Trade Summary
Total Premium
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Strike Width
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Lower Breakeven
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Upper Breakeven
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Commonly asked Strangle questions
What is a long strangle?
Buy an OTM call and OTM put. You pay less premium than a straddle but usually need a bigger move to break even.
What is a short strangle?
Sell both legs to collect premium; you want the underlying to stay between strikes, but tail risk is real on large moves.
How do breakevens work?
At expiry, rough upper breakeven is call strike plus total premium per share; lower is put strike minus total premium—confirm with your payoff graph.
How do I pick strikes?
Traders balance cost vs probability: wider strikes are cheaper but need larger moves; tighter strikes behave more like a straddle.
Strangles around earnings?
Volatility and gap risk can dominate—IV crush after the event can hurt long strangles even if the stock moves.
What is a covered strangle?
Stock-backed short options: sell OTM call and put against shares (or cash-secured put side)—different risk than naked short strangles.
Related Calculators
Daily Cumulative P&L
$33,989.51+$32,609.07
Avg Trade: $60.80
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Best Performing
Morning Breakouts
82% Win Rate
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