Long strangle service is designed for those traders who want to trade safe and also safe guard their capital. In this services we provide hedging call based news or events which provide volatility.Taking position in both the side with equal premium will lock your loss and only provide opportunity to earn profit. Here in iTS capita long strangle give you limited risk with unlimited profit.
The long strangle, also known as buy strangle or simply "strangle", is a neutral strategy in options trading that involve the simultaneous buying of a slightly out-of-the-money put and a slightly out-of-the-money call of the same underlying stock and expiration date.
The long options strangle is an unlimited profit, limited risk strategy that is taken when the options trader thinks that the underlying stock will experience significant volatility in the near term
Unlimited Profit Potential
Large gains for the long strangle option strategy is attainable when the underlying stock price makes a very strong move either upwards or downwards at expiration.
The formula for calculating profit is given below:
Maximum loss for the long strangle options strategy is hit when the underlying stock price on expiration date is trading between the strike prices of the options bought. At this price, both options expire worthless and the options trader loses the entire initial debit taken to enter the trade.
The formula for calculating maximum loss is given below: