Strangle Option

A strangle is an options trading strategy in which the trader simultaneously buys (long strangle) or sells (short strangle) both a call option and a put option on the same underlying asset and expiry date, but with different strike prices — typically with the call strike set above the current market price and the put strike set below it, both out of the money. In a long strangle, the buyer profits if the underlying asset makes a large price move in either direction — beyond the combined cost of the two premiums paid — making it a volatility play. In a short strangle, the seller collects premiums from both options and profits if the underlying price stays within the range between the two strikes until expiry. Strangles are cheaper to initiate than straddles (which use at-the-money options) but require a larger price move to become profitable for the buyer. For options traders on Ventura Securities' F&O platform, strangles are widely used around high-impact events such as Union Budget announcements, RBI policy decisions, quarterly earnings results, and index rebalancing — where significant but directionally uncertain price moves are anticipated.