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Long strangle calculator
cheaper than a straddle, needs more move

A long strangle buys an out-of-the-money call and an out-of-the-money put. It costs less than a straddle because both legs start out of the money — and for the same reason it needs a bigger move to pay. The gap between the strikes is dead space where you lose everything.

Outlook: Volatile — direction unknown

Max profit

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best case at expiry

Max loss

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worst case at expiry

Breakeven

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where the trade turns even

Net debit / credit

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to open the position

Your long strangle

Per-share premiums. One contract = 100 shares.

Underlying price

Long call @ strike

Premium paid

Long put @ strike

Premium paid

Contracts

100 shares per contract

Profit at expiry Loss at expiry Breakeven Strikes & spot

How a long strangle pays

Total cost = call premium + put premium Upper breakeven = call strike + total cost Lower breakeven = put strike − total cost Max loss = total cost × 100 × contracts (anywhere between the strikes) Max gain = unlimited to the upside

Cheaper entry, wider breakevens. Lower cost is the appeal; needing a larger move is the price of it.
The whole zone between strikes is a total loss. Unlike a straddle where only one exact price is worst-case, a strangle loses everything across a range.
Long vega, same as a straddle. Rising implied volatility helps both legs; a post-event collapse hurts both.

Worth naming. Strangles look attractive because the premium is small, which makes them easy to over-size. The low cost per contract is exactly why traders buy too many — and the probability of finishing between the strikes, losing everything, is higher than for a straddle.

What this does not model

Every figure here is the payoff at expiry. Before then your position is marked at market prices that still carry time value, so a trade can show a loss while sitting exactly where you wanted it — falling implied volatility alone will do that.

For the full version — Greeks, marks and what-if scenarios — that is what the GreeksView desk does, in your browser, against option-chain figures from our licensed market-data feed.

Frequently asked questions

What is the breakeven on a long strangle?

There are two. Upper is the call strike plus total premium; lower is the put strike minus total premium. A 105 call at $2.20 and a 95 put at $2.00 costs $4.20, so you break even above $109.20 or below $90.80 — a move of roughly 9% either way from a $100 stock.

Is a strangle cheaper than a straddle?

Yes, because both legs start out of the money. But cheaper does not mean better: the strangle's breakevens sit further apart, so it needs a larger move to profit. You are trading upfront cost against the size of move required.

What happens if the stock finishes between the strikes?

You lose the entire premium. Both options expire worthless anywhere between the put strike and the call strike, which on a typical strangle is a wide zone. This is the most likely single outcome, which is why position sizing matters more than the low ticket price suggests.

When would I choose a strangle over a straddle?

When you expect a very large move and want more contracts for the same capital, or when the straddle's at-the-money premiums are unusually expensive. If you expect a moderate move, the straddle's tighter breakevens usually win.

Why does my broker show a different number than this calculator?

Because you are comparing a mark-to-market value against an expiry value. Until expiry your options still carry time value, and your broker prices them at what the market will pay right now. Time passing, or implied volatility falling, can show a loss on a position that would be profitable if expiry were today.

See it on a real chain

The numbers above are the ones you typed. Here is a long strangle built from SPY's own chain at the last close — real strikes, real premiums, with its breakevens and probability of profit.

SPY long strangle, priced from the close →

Run this on the GreeksView desk against a real option chain

GreeksView builds positions from real option chains, with Greeks labelled by source and delay, gamma exposure and what-if scenarios — in your browser, on figures from our licensed market-data feed.

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Educational tool only — not investment advice, and not a recommendation to enter any position. Options involve substantial risk and are not suitable for every investor. Figures are theoretical, exclude commissions and taxes, and assume the position is held to expiry. GreeksView is not a broker and does not hold funds.