Long Strangle Options Strategy
A long strangle is an options strategy where you buy an out-of-the-money call and an out-of-the-money put (different strikes, same expiration). It is a volatility strategy designed to profit from a large move in either direction, often at a lower cost than a long straddle.
Breakevens
Total premium paid is Call Premium + Put Premium. Breakevens at expiration are typically: Lower BE = Put Strike − Total Premium and Upper BE = Call Strike + Total Premium.
Max Profit and Max Loss
Max loss is limited to the total premium paid (plus fees). Max profit is theoretically large: upside can be substantial if the underlying rallies above the call strike, and downside can be substantial if it falls below the put strike.
Notes
This calculator shows expiration payoff. Real P&L before expiration depends on implied volatility, time decay, and bid/ask spreads.