Long Strangle
Computes the cost and breakevens of a long strangle: buying a lower-strike put and a higher-strike call, both out of the money. It's a cheaper volatility bet than the straddle, because out-of-the-money premiums cost less — in exchange, the asset has to move further to turn a profit. The tool sums the premiums and works out the two breakeven points. Enter the put and call strikes and their premiums.
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Long Strangle
Computes the cost and breakevens of a long strangle: buying a lower-strike put and a higher-strike call, both out of the money. It's a cheaper volatility bet than the straddle, because out-of-the-money premiums cost less — in exchange, the asset has to move further to turn a profit. The tool sums the premiums and works out the two breakeven points. Enter the put and call strikes and their premiums.
The straddle on a budget
The strangle is the straddle's cousin and solves the same problem, betting on movement without picking a direction, but for less money. Instead of buying call and put at the same strike, you buy both out of the money: the put at a strike below the current price and the call at one above. Since out-of-the-money options are cheaper, the outlay drops.
The discount has a hidden cost: the asset has to move further for the position to profit. Between the two strikes there's a dead zone where, at expiry, both options expire worthless and you lose everything you paid. The strangle pays off when you expect a really big move and want to cut the amount at risk compared with the straddle.
Enter the put and call strikes and their premiums. The tool sums the total cost and returns the two breakeven points: the put strike minus the cost, below, and the call strike plus the cost, above. The distance between them shows the size of the move needed to climb out of the loss.
Related Tools
Long Straddle
Computes the cost and breakevens of a long straddle: buying a call and a put at the same strike and expiry. It's the classic volatility bet — you profit if the asset moves a lot in either direction, regardless of which way, and lose at most the premium paid if it stays put. The tool sums the two premiums and works out how far from the strike the asset must move to break even. Enter the strike and the call and put premiums.
Long Call Condor
Computes the outcome of a long call condor: buy one low-strike call, sell two middle-strike calls and buy one high-strike call. It's a cousin of the butterfly with a wider profit zone: you bet the asset will stay within a range rather than land exactly on a point. The tool returns the net cost, the maximum profit, the maximum loss and the two breakeven points. Enter the four strikes and the four call premiums.
Iron Butterfly
Computes the outcome of an iron butterfly: selling a call and a put at the same central strike (the body) and buying a further-out call and put (the wings), collecting a net credit. It's a strong bet that the asset will finish right at the central strike, with a bigger credit than an iron condor but a narrower profit range. The tool returns the maximum profit, the maximum loss and the two breakeven points. Enter the central strike, the wing width and the credit received.
Long Call Butterfly Spread
Computes the outcome of a long call butterfly: buy one low-strike call, sell two middle-strike calls and buy one high-strike call, with equally spaced strikes. It's a bet that the asset will sit near the middle strike at expiry. The tool returns the net cost (debit), the maximum profit, the maximum loss (capped at the debit) and the two breakeven points. Enter the three strikes and the three call premiums.
Covered Call
Computes the outcome of a covered call: holding a stock and selling a call on it to collect the premium. It's the most popular income strategy in the options market: you earn the premium now in exchange for capping your profit at the strike. The tool returns the maximum profit (if the stock is called away), the percentage return in that case, the breakeven and the maximum loss. Enter the stock price, the strike of the call sold and the premium received.
Protective Put
Computes the outcome of a protective put: holding a stock and buying a put as insurance against a fall. The put sets a floor on the loss but costs the premium, which raises the breakeven. It's the most direct insurance for a long position: the upside stays unlimited, the downside is capped. The tool returns the maximum loss and the breakeven. Enter the stock price, the put strike and the premium paid.
The results provided by this tool are for general informational and educational purposes only and do not constitute professional, financial, medical, legal, tax or accounting advice. Always confirm important decisions with a qualified professional and official sources.