Copyright (c) 2009, Commodity Trading School, All Rights Reserved! Option Strategy #9: Long Strangle Buy An Out-Of-The-Money Call, And Buy An Out-Of-The-Money Put Use a Long Strangle when the market is range bound, and you expect: 1. The market to break out of the range 2. To make a large move 3. And when you don’t have a clear idea of which side to expect the breakout. The Long Strangle is similar to a Straddle, but is less expensive to implement, which is done by buying out of the money options rather than at the money options. The profit potential is unlimited in either direction, and the break even point at expiration is equal to the strike price plus or minus the net cost of the spread. Futures Traders Helping Future Traders