Financial Analysis
OCF
May 1, 2021
Islamic Finance
Muqayadha
May 2, 2021

An option combination that constitutes a long position in both a call and a put which have the same expiration date and different strike prices (the call strike price is higher than the put strike price). This position is typically taken by investors/ traders who expect a big movement in the underlying stock but are not certain about the direction of that movement.

It is also known as buying a strangle or long strangle.

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