What is the max profit of a strangle?

Unlimited: the profit keeps growing the further the price moves its way. The calculator gives the figure for your strikes and expiration.

What is the max loss of a strangle?

Limited: there is a floor under what it can lose. The calculator gives the figure for your strikes and expiration.

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

Open the 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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Strangle calculator

Buy an OTM call and OTM put. Cheaper than a straddle, needs a bigger move.

Open in the calculator All strategies

OutlookBig move either way

Max profitUnlimited

Max lossLimited

LevelIntermediate

What is a strangle?

A long strangle is a cheaper volatility buy than a straddle. The stock must reach either OTM strike plus debit. Max loss is the combined premium.

Legs

Buy an OTM call
Buy an OTM put

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

Live example on SPY

Net debit$3,341.50

Max loss$3,341.50

Max profitUnlimited

Chance of profitLocked: ProUpgrade

BreakevensBelow $719.59 or above $791.42At expiration

758C+112/18 · $17.93
753P+112/18 · $15.48

SPY · Oct 30, 2026, 3:59 PM ET

With SPY at 755.53, on the Dec 18 expiration (49 days out): buy 1 758 call and buy 1 753 put. Net debit $3,341.50. Max profit unlimited; max loss $3,341.50. Breakevens at expiration: Below $719.59 or above $791.42.

Open this 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 strangle?: A long strangle is a cheaper volatility buy than a straddle. The stock must reach either OTM strike plus debit. Max loss is the combined premium.
When does a strangle make money?: Buy an OTM call and OTM put. Cheaper than a straddle, needs a bigger move.
What is the max profit of a strangle?: Unlimited: the profit keeps growing the further the price moves its way. The calculator gives the figure for your strikes and expiration.
What is the max loss of a strangle?: Limited: there is a floor under what it can lose. The calculator gives the figure for your strikes and expiration.
How do I calculate a strangle's profit and loss?: Open the 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.