What is the max profit of a short strangle?

Limited: there is a ceiling on what it can make. The calculator gives the figure for your strikes and expiration.

What is the max loss of a short strangle?

Unlimited: the loss keeps growing the further the price moves against it. The calculator gives the figure for your strikes and expiration.

How do I calculate a short strangle's profit and loss?

Open the short strangle in the strategy calculator. It places the legs on a real expiration, and you can drag the strikes, change the date, and read profit and loss by price and date, with max profit, max loss, and the breakevens.

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Short strangle calculator

Neutral. Sell an OTM call and OTM put for a wider pin range than a straddle.

Open in the calculator All strategies

OutlookNeutral

Max profitLimited

Max lossUnlimited

LevelAdvanced

What is a short strangle?

A short strangle wants the stock between the two shorts. Credit is smaller than a straddle but the profitable range is wider. A breakout is still undefined risk.

Legs

Sell an OTM call
Sell an OTM put

Payoff at expiration, sketched. The live example below has the real prices.

Live example on SPY

Net credit$878.00

Max lossUnlimited

Max profit$878.00

Chance of profitLocked: ProUpgrade

BreakevensBetween $702.22 − $808.78At expiration

Est. margin$150,222.00

800C−112/18 · $2.14
711P−112/18 · $6.64

SPY · Oct 30, 2026, 3:59 PM ET

With SPY at 755.53, on the Dec 18 expiration (49 days out): sell 1 800 call and sell 1 711 put. Net credit $878. Max profit $878; max loss unlimited. Breakevens at expiration: Between $702.22 − $808.78.

Open this short strangle in the calculator to move the strikes, change the date and implied volatility, and read profit and loss by price and date.

Questions

What is a short strangle?: A short strangle wants the stock between the two shorts. Credit is smaller than a straddle but the profitable range is wider. A breakout is still undefined risk.
When does a short strangle make money?: Neutral. Sell an OTM call and OTM put for a wider pin range than a straddle.
What is the max profit of a short strangle?: Limited: there is a ceiling on what it can make. The calculator gives the figure for your strikes and expiration.
What is the max loss of a short strangle?: Unlimited: the loss keeps growing the further the price moves against it. The calculator gives the figure for your strikes and expiration.
How do I calculate a short strangle's profit and loss?: Open the short strangle in the strategy calculator. It places the legs on a real expiration, and you can drag the strikes, change the date, and read profit and loss by price and date, with max profit, max loss, and the breakevens.