Long Strangle - Components
Buy an Out Of The Money (OTM) call option and an OTM put option on the underlying stock at the same expiration month.
Buy OTM Call + Buy OTM Put
Long Strangle - Expectation
Volatile
Long Strangle - Risk / Reward
Maximum Profit: Unlimited
Maximum Loss: Limited
Long Strangle - Breakeven Point
Upper Break Even Point = Strike Price + Net Debit Paid
Lower Break Even = Strike Price - Net Debit Paid
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