Strangle Options: How to Profit During Sharp Price Swings

Unsure about being bullish or bearish with your latest crypto options trade? Fortunately, being a crypto options trader grants you the choice of earning profits without being forced to take a side. One example of such an options strategy that takes advantage of volatility is the strangle. By taking positions on both calls and puts, crypto options traders can benefit from any large movements in the underlying asset. 

Keen to learn how to personally plan and execute such trades? From long strangle options strategies that allow you to benefit from movements on both ends of the market to short strangle options strategies that make use of upcoming volatility, here's all you need to know about trading and setting up strangles in the crypto options market.

Key Takeaways:

• Strangle options are an investment strategy consisting of two separate option contracts with different strike prices, but the same expiration date.
• The strangle options strategy allows traders to benefit from moderately volatile markets by simultaneously trading call and put options at different strike prices.
• There are two types of strangle options strategies available: long strangle and short strangle.

What Is a Strangle Option Strategy?