Short Strangle Option

Short Strangle Option

Short Strangle is an option strategy with limited profit potential and conditionally unlimited risk, based on selling volatility. The use of such a strategy makes sense when the trader has a prediction that the price will not change much before the expiration. In this case, the seller of the options receives his premium, but does not fulfill any obligations and does not incur any losses associated with them.

The advantage is that the seller of options in short strangle strategy receives at once a double option premium for two differently directed options. As well as the possibility to profit in the absence of any noticeable price movements and volatility.

Strategy explanation

The short strangle strategy is selling call and put options with the same expiration date but different strike prices. It works like this: you sell put options with a certain strike price and then sell a similar number of call options with a different strike price. The strike of the call option must be greater than the strike of the put option. All options have the same expiration date.

Let’s take a short strangle example. Suppose the call option has a premium of $25 and a strike price of $100. The put option has a premium of $15 and a strike price of $90. The total premium is $40 ($25 + $15). Thus, the first breakeven point is at $140 ($100 + $40), and the second one is $50 ($90 - $40), respectively. If the asset stays in the $50 to $140 price range, we will make a profit of $4000 ($40 * $100). And we will lose money if the price moves out of this price range.


2022-11-22 • Updated

Frequently asked questions

  • How to start trading?

    If you are 18+ years old, you can join FBS and begin your FX journey. To trade, you need a brokerage account and sufficient knowledge on how assets behave in the financial markets. Start with studying the basics with our free educational materials and creating an FBS account. You may want to test the environment with virtual money with a Demo account. Once you are ready, enter the real market and trade to succeed.

  • How to open an FBS account?

    Click the 'Open account' button on our website and proceed to the Trader Area. Before you can start trading, pass a profile verification. Confirm your email and phone number, get your ID verified. This procedure guarantees the safety of your funds and identity. Once you are done with all the checks, go to the preferred trading platform, and start trading.

  • How to withdraw the money you earned with FBS?

    The procedure is very straightforward. Go to the Withdrawal page on the website or the Finances section of the FBS Trader Area and access Withdrawal. You can get the earned money via the same payment system that you used for depositing. In case you funded the account via various methods, withdraw your profit via the same methods in the ratio according to the deposited sums.

Deposit with your local payment systems

Data collection notice

FBS maintains a record of your data to run this website. By pressing the “Accept” button, you agree to our Privacy policy.


A manager will call you shortly.

Change number

Your request is accepted.

A manager will call you shortly.

Next callback request for this phone number
will be available in

If you have an urgent issue please contact us via
Live chat

Internal error. Please try again later

Don’t waste your time – keep track of how NFP affects the US dollar and profit!

You are using an older version of your browser.

Update it to the latest version or try another one for a safer, more comfortable and productive trading experience.

Safari Chrome Firefox Opera