Short Strangle Calculator

Search a symbol to visualize the potential profit and loss for a short strangle option strategy.


What is a short strangle?

NeutralLimited ProfitUnlimited Loss

The opposite of a long strangle, and similar to a short straddle but with different strikes. This strategy makes less income than a short straddle, but also has a wider profitable range, making the worst case scenario less likely.

Time is beneficial for this strategy as both options will decay and become cheaper to buy back, but like a short straddle, there is unlimited risk so you don't want to be exposed for too long.

ABProfitLossStock Price
  • Sell a put at strike A
  • Sell a call at strike B