What is a Short Strangle?
A Short Strangle is a wider, more forgiving version of the Short Straddle. You sell an OTM Call AND an OTM Put at different strikes. You collect slightly less premium than a straddle, but your profit zone is wider — giving more room for the market to move before you start losing. Still has unlimited risk on both sides.
⚠️ Risk Warning: Same unlimited risk profile as the Short Straddle but with wider breakevens. Still requires strict stop-losses and active monitoring. Beginners should use the Iron Condor instead — same income concept with fully capped risk.
At a Glance
Max Profit
Total Premium Received
Max Loss
Unlimited beyond breakevens
Breakeven
Between both short strikes
| Action | Type | Strike | Expiry | Qty |
|---|
| Sell | Call (CE) | OTM Upper Strike | 21–45 DTE | 1 Lot |
| Sell | Put (PE) | OTM Lower Strike | Same | 1 Lot |
P&L Simulator
Short Strangle
📊 Short Strangle — Payoff Chart + P&L Calculator
Index Price: 22000 · Short Call Strike: 22500 · Short Put Strike: 21500 · Call Premium: 65 · Put Premium: 70 · Lot Size: 75 · Price at Exit: 22000
✓ When to Use / ✕ When to Avoid / ◉ IV / ◷ DTE
3 use items · 3 avoid items
#Volatility Plays
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