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Last Updated: 9:15 AM 09 APR

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Strangle Chart

Watch here, How to use Strangle Chart?

What is Strangle Chart

A Strangle Options Strategy is an Options strategy that includes both Call and Put options. The strike prices for both options are different but the underlying asset and the expiry date are the same.

Interpretation of Strangle Chart

Investors use the Strangle Options Strategy if they think that the underlying asset can give big price movement in any direction: higher or lower. A Strangle is similar in features to a Straddle but the only difference is Strangle uses different strike prices in contracts and a Straddle uses the same strike price. On the TalkOptions website, the Strangle chart tool displays options for Strangle strategy charts. Here you will be able to view the price movement of the selected strangle. Here you will be able to select call strike and put strikes for the strangle for any available expiry date such as weekly/monthly. Select the symbol, expiry date and one call strike and one put strike then click anywhere on the screen it will automatically show the strangle chart along with the Spot chart also. On this tool, we also provided the timeframe of the Strangle of 1 min, 5 min and 2 days as well. All shown charts will be of “LINE CHARTS”. Blue Line shows Spot price and Pink line shows the Strangle price. It will help traders to analyse the strangle every 1 min. Traders can view the High of the Strangle price, the Low of the Strangle price and the Average of the Strangle Price.

How to use

Traders can see the Strangle price of the Index as well as Stocks also.
In the Live Market, traders can use a strangle strategy by following these steps:

  • Click the "Add Strategies" button found in the left corner of the page.
  • Choose the name of the asset you're trading and its expiration date.
  • Select the specific price at which you want to make the trade. This is called the "strike price."
  • In the strangle strategy, traders have to select different strike prices.
  • Once you've picked these options, the page will refresh, and you'll be able to see a chart showing the straddle strategy for the strike price you selected.
Traders can make the Straddle Strategy by using LTP of the strike prices or with the Open Interest (OI) data If traders want to select with the help of LTP then they need to just select the Call Option strike and the Put Option strike chart, then the chart will automatically pop up. If a trader wants to take a Strangle strategy on the basis of the highest OI then they used to select the OI button on the top corner of the pop-up window and they need to just select the Call Option strike price and the Put Option strike price then the chart will automatically come. On the top corner of the Strangle chart, traders can view the High Price of the strangle, the Low price and the average price of the selected Strangle. This feature helps traders to take fast action in the Live Market when there is high volatility
For eg, If the Nifty/Stock Spot price chart is in Range bound. If there is no volatility then Shorting the Strangle is a good option for traders. Let's say, if there is a big movement either upside or downside, then Long Strangle can be beneficial because either side CE or PE premiums will shoot up one way. So analysing the Spot chart, traders can take decisions either to buy the Strangle or sell the Strangle.