A strangle combines an out-of-the-money call and put at different strikes — cheaper than a straddle but needing a bigger move (if long) or wider room (if short). It’s the straddle’s spread-out sibling.

Long strangle

Buy an OTM call and an OTM put (different strikes straddling the price). It’s cheaper than a straddle (both legs are OTM), but needs a bigger move to profit (price must travel past a strike plus the premium). A direction-agnostic bet on a large move, at lower cost but longer odds.

Short strangle

Sell an OTM call and put. You collect premium and profit if price stays between the strikes — a wider safe zone than a short straddle, so a higher win rate, but less premium. It’s still undefined-risk (a big move loses a lot). Popular with premium sellers wanting a range bet.

A strangle is a straddle with room between the strikes: cheaper and needs a bigger move (long), or wider and safer but less premium (short).

The takeaway

A strangle is an OTM call + OTM put at different strikes — a wider, cheaper straddle. Long = cheap big-move bet; short = wider-range premium sale (undefined risk). NoVo trades single directional options instead.