
Long Strangle
A long strangle is an options strategy where a trader buys a call option and a put option on the same underlying asset, both with the same expiration date. The call’s strike price is above the current market price, while the put’s is below. Investors use long strangles when they anticipate a large price movement in the underlying asset but are unsure of the direction of the movement.
Related Terms
Averaging Down
Averaging down is an investment strategy where an investor buys additional shares of a stock...
Firm Allotment
Firm allotment refers to the allocation of shares in an IPO to non-retail investors, guided...
Acceptance Credit
Acceptance Credit is a method where buyers authorize the transfer of funds to sellers on...
Forward Price
The forward price is the agreed-upon value at which a forward contract is settled and...
Anaume Pattern
An Anaume Pattern is a technical chart pattern that occurs when a gap is filled...
Equity Market
The equity market is where shares are traded, capital is raised, and stocks are offered,...