---
title: "Short Strangle — options strategy"
type: "options-strategy"
topic: "Options strategies (Indian markets)"
category: "Income"
outlook: "Neutral / range-bound"
complexity: "advanced"
risk: "undefined (open-ended)"
slug: "short-strangle"
url: "https://learn-derivatives.tapetide.com/strategies/short-strangle"
markdown_url: "https://learn-derivatives.tapetide.com/strategies/short-strangle.md"
source: "DeltaDesk by Tapetide"
---

# Short Strangle

> **In plain English:** Like a short straddle but with a wider safe zone. You sell an OTM call and put, giving the price more room to wander before you lose. Still has open-ended risk on a big move.

**Category:** Income · **Market view:** Neutral / range-bound · **Complexity:** advanced · **Risk:** Undefined (open-ended)

## Structure

- Sell ATM+3 strikes call
- Sell ATM-3 strikes put

## Summary

Sell an OTM call and OTM put — a wider safe zone than a short straddle.

## When to use it

Range-bound expectation, high IV. Wider breakevens than a short straddle.

## Profit & loss

- **Max profit:** Total premium received.
- **Max loss:** Unlimited on both sides.

## Net Greeks profile

Short vega, positive theta, short gamma.

## Margin

Margin-intensive (you sell options).

## Common mistakes

- Selling too tight.
- No defined exit or hedge.

## India example

Sell a 3-OTM strangle on BANKNIFTY when IV rank is high and the trend is flat.

---

**Build it live in the [DeltaDesk Strategy Lab](https://learn-derivatives.tapetide.com/tools/strategy-lab)** — tune strikes and see payoff + net Greeks update instantly.

*Educational content only — nothing here is investment advice. Derivatives carry significant risk of loss. Tapetide is not a SEBI-registered research analyst or investment adviser.*