Long Strangle
In plain English
A cheaper long straddle. You buy an out-of-the-money call and put, so it costs less — but the price has to move further before you profit. A bet on a really big move.
How it's built
Buy an OTM call and OTM put — cheaper than a straddle, but needs a bigger move.
Illustrative payoff at expiry on a NIFTY-like underlying (spot 24,000, 7d, 13% IV). The shape is the point — open it in the Strategy Lab to tune spot, time and volatility live.
Max profitUnlimited
Max loss₹16,551
Net premiumDr ₹16,551
Breakevens—
When to use it
Expecting a very large move; cheaper premium than a straddle but with wider breakevens.
Max profit
Unlimited.
Max loss
Total premium paid.
Common mistakes
- Strikes too far OTM so the price never reaches breakeven.