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Define: Calendar Strangle

Calendar Strangle is a neutral options trading strategy that profits in the short term when the underlying stock remains stagnant and keeps the possibility of profiting when the stock breaks out in the longer run.

The Calendar Strangle consists of buying a long Strangle on a far expiration month and then writing a short Strangle for the near month. You would typically use a Calendar Strangle if you are of the opinion that a stock would breakout in a few months but would likely remain stagnant for the near month.

Read the full tutorial on Calendar Strangle.