Definition 1.
An options strategy involving a put option and a call option with the same expiration dates and strike prices which are out of the money. The investor profits only if the underlier moves dramatically in either direction.
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Definition 2.
The purchase or sale of an equal number of puts and calls on an underlying stock, with the same expiration date but different strike prices. The investor who purchases or sells a strangle seeks to profit from large changes in the price of the underlying stock, regardless of whether the price goes up or down.
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Definition 3.
Buying or selling an out-of-the-money put option and call option on the same underlying instrument, with the same expiration. Profits are made only if there is a drastic change in the underlying instrument's price.
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Definition 4.
An options strategy where the investor holds a position in both a call and put with different strike prices.
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