STRANGLE

noun
9 Scrabble
12 WWF
S 1
T 1
R 1
A 1
N 1
G 2
L 1
E 1

Definition

A trading strategy using options, constructed through taking equal positions in a put and a call with different strike prices, such that there is a payoff if the underlying asset's value moves beyond the range of the two strike prices.

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