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What Is a Strangle?
The strangle is the straddle’s cheaper, wider cousin — same idea, different strikes, different math.
NoVo Options Trading · 2026
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.
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NoVo is a software tool for market analysis and for executing trades you initiate, not financial advice. This article is general education, not investment advice. Options trading involves substantial risk of loss, up to and including your entire capital. NoVo makes no guarantee of profit, win rate, or performance, and past results do not predict future outcomes. You are responsible for your own broker account, configuration, and trading decisions.