A long strangle is a multi-leg options strategy comprised of buying 1 out-of-the-money (OTM) put option and 1 out-of-the-money call option with the same expiration date. These positions or legs are taken simultaneously, usually through a function on your online brokerage app. If your broker doesn't have a strangle trade option, then you can place the trades manually and individually. First, you buy the put option and then buy the call option.
Get Roblox alerts:
Sign Up
For example, an XYZ $50/$55 long strangle is comprised of a long 1 XYZ $55 put option and a long 1 XYZ $50 call option.