strangle strategy

Strangle Strategy

An option strategy in which one buys two out-of-the-money options (usually one call and one put) on the same asset at different strike prices. One profits from a strangle position when there is a large price movement on the underlying asset, regardless of the direction. This is because one of the options will become in the money, so long as the price moves in one direction or the other. Loss only occurs if the price of the underlying asset remains largely the same.

strangle strategy

The strategy of selling both an out-of-the-money call and an out-of-the-money put. Profits are greatest when relatively small price movements occur in the underlying asset and neither option is exercised. In case the value of the underlying asset moves in one direction, the loss on one side of the spread is at least partially offset by a gain on the other side.

单词	strangle strategy
释义	DictionarySeestrangle strangle strategy Strangle Strategy An option strategy in which one buys two out-of-the-money options (usually one call and one put) on the same asset at different strike prices. One profits from a strangle position when there is a large price movement on the underlying asset, regardless of the direction. This is because one of the options will become in the money, so long as the price moves in one direction or the other. Loss only occurs if the price of the underlying asset remains largely the same. strangle strategy The strategy of selling both an out-of-the-money call and an out-of-the-money put. Profits are greatest when relatively small price movements occur in the underlying asset and neither option is exercised. In case the value of the underlying asset moves in one direction, the loss on one side of the spread is at least partially offset by a gain on the other side.
随便看	output third-order intercept point output threshold maximum-ratio combining output threshold test outputting output-to-input ratio output transaction data object output transfer gate output transformer output transformer coupled output transformer less output transformer-less output transmission control manager output traveling wave tube output trigger mode output tube output unit output vertical tab disposition output virtual interface number output voltage output voltage ripple output weight enumerator output winding output word outq out-quarters