Strangle and straddle are both option strategies which allow investor to gain on significant moves either up or down the stock price. Both strategies consist of buying an equal number of call and put options with the same expiration date. In this post we attempt to explain difference between strangle and straddle strategies.
Difference between straddle and strangle
1)The strike price of the options, In a straddle, the options are bought with the same the same strike price in a strangle ,the options are bought with different strike price.
2)Strangle strategy needs a large movement in the market where as straddle covers the profit in less movement of the index also.
3)The costing of strangle strategy is more as compared to the straddle so are the chances of profit....