Strip Strangle

The long options strangle is an unlimited profit, limited risk strategy that is taken when the options trader thinks that the underlying stock will experience significant volatility in the near term. Long strangles are debit spreads as a net debit is taken to enter the trade. The long strangle is a more bearish options strategy that involve the buying of more slightly out-of-the-money put than a slightly out-of-the-money call of the same underlying stock and expiration date.