# Long Strangle

> Is the expected move large enough to reach one of the two break-evens?

| Property | Value |
| --- | --- |
| Market phase | Big move expected, direction unknown (event, coiling at the edge of a range) |
| Driver | Gamma / realised vol - you get paid on the size of the move, whichever way it goes, Vega - you get paid on a change in implied volatility |
| Direction | direction-neutral, needs a very big move |
| Max profit | unlimited to the upside, put strike minus debit to the downside |
| Max loss | the debit paid |
| Risk defined | Yes |
| Legs | +1 Call @Kc (OTM); +1 Put @Kp (OTM) |
| Approval level | 2 (Long calls and puts, cash-secured puts) |
| Experience | Intermediate |

## Formulas

```text
Break-even: Kp - D / Kc + D
Max profit: unlimited to the upside, put strike minus debit to the downside
Max loss: D
```

## Legs

1. +1 Call @Kc (OTM)
2. +1 Put @Kp (OTM)

[Read this strategy on the web](https://www.mindtrajour.com/en/academy/strategies/long-strangle)