> For the complete documentation index, see [llms.txt](https://catpull-1.gitbook.io/hegic/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://catpull-1.gitbook.io/hegic/buying-options/high-volatility-options/strangle.md).

# Strangle

Low cost, very high profits if the price rises or falls significantly

<figure><img src="https://2853328886-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2F9IfN0SsphIpKDZ52Rrsw%2Fuploads%2FUbAEPmVbPDcPZrdl4BHD%2F1_C95TF87Ec5TWaav7rFP8lQ.webp?alt=media&amp;token=2bf86e08-e091-4876-975d-ce11ff22190a" alt=""><figcaption></figcaption></figure>

**The Strangle** is a strategy that helps you to make a bet on a volatility rise: that the price of an asset will soon rise or fall significantly in either direction. The Strangle consists of **an out-of-the-money call option and an out-of-the-money put option with the same strike price and the same expiration.**

Instead of being bullish or bearish about the future price, you can have the following reasoning when buying it: “**I don’t care what the price will be, but if it changes significantly in either direction during the period of holding the Strangle, I win big.”**

**The Strangle is much cheaper than the Straddle** (which consists of two at-the-money options). This means that you will pay much less when buying Strangles (two out-of-the-money options) and have a higher profits potential.

**The Strangle has a limited cost and unlimited potential profit.**

{% hint style="info" %}
Buying one Strangle is equal to buying two OTM options - one OTM call and one OTM put.
{% endhint %}