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  4. Long Strangle

    Note: Input negative shares/contracts to indicate sale, positive for buy.
    First enter a current underlying price, assumed implied volatility and interest rate.
    Underlying price required Underlying price must be a number Underlying price must be positive Volatility required Volatility must be a number Volatility must be positive Volatility must be less then 100% Interest rate required Interest rate must be a number Interest rate must be positive Interest rate must be less then 100%
    Now, enter the options or stocks bought or sold for a Long Strangle.
    {{leg.implementation}}
    {{leg.implementation}}
    Days to expire must be a whole number. Days to expire required. Days to expire must be positive. Contracts required. Contracts needs to be positive (Buy). Contracts needs to be negative (Sell). Premium required. Premium must be a number. Premium must be positive. Strike required. Strike must be a number. Strike must be positive. In order to implement an iron condor the first leg strike will need to be out of the money (below the underlying price, since it is a put). The second leg needs to be at a strike price lower then that. The third leg will need to be out of the money (higher than the underlying since it is a call). The fourth leg will need to be at a higher strike price than that. In order to implement a reverse iron condor the first leg strike will need to be out of the money (below the underlying price, since it is a put). The second leg needs to be at a strike price lower then that. The third leg will need to be out of the money (higher than the underlying since it is a call). The fourth leg will need to be at a higher strike price than that. In order to implement a long condor the first leg strike will need to be in the money (below the underlying price, since it is a call). The second leg needs to be at a strike price lower then that. The third leg will need to be out of the money (higher than the underlying since it is a call). The fourth leg will need to be at a higher strike price than that. In order to implement a short condor the first leg strike will need to be in the money (below the underlying price, since it is a call). The second leg needs to be at a strike price lower then that. The third leg will need to be out of the money (higher than the underlying since it is a call). The fourth leg will need to be at a higher strike price than that. In order to implement a stock repair strategy the stock bought purchase price must be above the current stock price (have an unrealized loss). The call purchased must be at the money (strike price equal to the underlying price). The calls sold must be out of the money (strike price above the underlying price). In order to implement a stock repair strategy The call purchased must be at the money (strike price equal to the underlying price). The calls sold must be out of the money (strike price above the underlying price). In order to implement a stock repair strategy the stock bought purchase price must be above the current stock price (have an unrealized loss). In order to implement a reverse iron condor, the first leg will need to be a buy (positive number). The second leg will need to be a sell (negative number). The third leg will need to be a buy (positive number). The fourth leg will need to be a sale (negative number). The contracts bought and sold must be of equal amount for a reverse iron condor strategy. In order to implement an iron condor, the first leg will need to be a sell (negative number). The second leg will need to be a buy (positive number). The third leg will need to be a sell (negative number). The fourth leg will need to be a buy (positive number). The contracts bought and sold must be of equal amount for an iron condor strategy. In order to implement a long condor, the first leg will need to be a sell (negative number). The second leg will need to be a buy (positive number). The third leg will need to be a sell (negative number). The fourth leg will need to be a buy (positive number). The contracts bought and sold must be of equal amount for a long condor strategy. In order to implement a short condor, the first leg will need to be a buy (positive number). The second leg will need to be a sell (negative number). The third leg will need to be a buy (positive number). The fourth leg will need to be a sell (negative number). The contracts bought and sold must be of equal amount for a short condor strategy. In order to implement a bull call spread, the first leg will need to be a buy (positive number). The second leg will need to be a sell (negative number). In order to implement a long call calander spread, the first leg will need to be a buy (positive number). The second leg will need to be a sell (negative number). In order to implement a long put calander spread, the first leg will need to be a buy (positive number). The second leg will need to be a sell (negative number). The contracts bought and sold must be of equal amount for a bull call spread. In order to implement a bear spread, the first leg will need to be a buy (positive number). The second leg will need to be a sell (negative number). The contracts bought and sold must be of equal amount for a bear put spread. The contracts bought and sold must be of equal amount for a long call calander spread. The contracts bought and sold must be of equal amount for a long put calander spread. In order to implement a collar spread, the first leg must be a buy (positive number). The second leg must be a sell (negative number). The third leg must be a buy (positive number). The options bought and sold must be of equal amount and the shares bought must be 100 times more then the options bought and sold for a collar spread. In order to implement a synthetic long call, the first leg must be a buy (positive number) and the second leg must be a buy (positive number). The shares sold must be 100 times more then the call options bought for synthetic long put strategy. In order to implement a synthetic long put, the first leg must be a sell (negative number) and the second leg must be a buy (positive number). The shares bought must be 100 times more then the put options bought for synthetic long call strategy. In order to implement a covered call, the first leg must be a buy (positive number). The second leg must be a sell (negative number). The shares bought must be 100 times more then the call options sold for a covered call. In order to implement a butterfly spread, the first leg must be a buy (positive number). The second leg must be a sell (negative number). The third leg must be a buy (positive number). The options bought on the first and third legs must be equal and the options sold on the second leg must be 2 times the options bought on the first and third legs for a butterfly spread. In order to implement a call ratio spread, the first leg must be a buy (positive number). The second leg must be a sell (negative number). The options sold on the second leg must be 2 times the options bought on the first leg for a call ratio spread. In order to implement a put ratio spread, the first leg must be a buy (positive number). The second leg must be a sell (negative number). The options sold on the second leg must be 2 times the options bought on the first leg for a put ratio spread. In order to implement a call back spread, the first leg must be a sell (negative number). The second leg must be a buy (positive number). The options bought on the second leg must be 2 times the options sold on the first leg for a put back spread. In order to implement a put back spread, the first leg must be a sell (negative number). The second leg must be a buy (positive number). The options bought on the second leg must be 2 times the options sold on the first leg for a call back spread. In order to implement a bull put spread, the first leg must be a buy (positive number). The second leg must be a sell (negative number). The option contracts bought and sold must be equal for a bull put spread. In order to implement a bear call spread, the first leg must be a buy (positive number). The second leg must be a sell (negative number). The option contracts bought and sold must be equal for a bear call spread. In order to implement an iron butterfly spread, the first leg must be a buy (positive number). The second and third legs must be sells (negative number). The fourth leg must be a buy (positive number). The call options bought must equal the put option sold in order to implement a synthetic long underlying. In order to implement an synthetic long underlying, the first leg must be a buy (positive number) and the second leg must be sells (negative number). The call options sold must equal the put option bought in order to implement a synthetic short underlying. In order to implement an synthetic short underlying, the first leg must be a buy (positive number) and the second leg must be sells (negative number). The options bought on the first and fourth legs must be equal to the options sold on the second and third legs for an iron butterfly spread. In order to implement a strip put options bought must be twice as much as call options bought. In order to implement a strap call options bought must be twice as much as put options bought. The shares of stock bought must be 100 times the call options bought and the call options sold must be twice as much as the call options bought to implement a stock repair strategy. In order to implement a a stock repair strategy, the stock position must be long (positive number) the first leg calls bought must be a buy (positive number) and the second leg calls bought must be a sell (negative number). In order to implement a collar the strike price of the call sold must be higher than the underlying (out of the money) and the the strike price of the put bought must be lower than the underlying (out of the money). In order to implement a covered call the strike price of the call sold must be higher than the underlying. In order to implement a butterfly spread the strike price of the first call bought must be lower than the underlying (in the money). The the strike price of the 2 calls sold must be equal to the underlying (at the money). And the strike price of the last call bought must be higher than the underlying (out of the money). In order to implement a long strangle both legs need to be out of the money. Therefore, the call strike should be higher than the underlying stock price, and the put strike should be lower than the underlying stock price. In order to implement a short strangle both legs need to be out of the money. Therefore, the call strike should be higher than the underlying stock price, and the put strike should be lower than the underlying stock price. In order to implement a bull call spread the strike price of the call bought must be lower than the strike price of the call sold. In order to implement a bear put spread the strike price of the put bought must be higher than the strike price of the put sold. In order to implement a call ratio spread the call bought must be in the money (below the strike price) and the calls sold must be out of the money (above the strike price). In order to implement a put ratio spread the put bought must be in the money (above the strike price) and the puts sold must be out of the money (below the strike price). In order to implement a call backspread the call(s) sold must be in the money (below the strike price) and the calls sold must be out of the money (above the strike price). In order to implement a put backspread the put(s) sold must be in the money (above the strike price) and the puts sold must be out of the money (below the strike price). In order to implement a bull put spread the put(s) bought must be out of the money (below the strike price) and the puts sold must be in the money (above the strike price). In order to implement a bear call spread the call(s) bought must be out of the money (above the strike price) and the calls sold must be in the money (below the strike price). In order to implement a long call calander spread the call sold must have an earlier expiration than the call bought In order to implement a long put calander spread the call sold must have an earlier expiration than the call bought In order to implement an iron butterfly spread the strike price of the first put bought must be lower than the underlying (out of the money). The the strike price of the puts and calls sold must be equal to the underlying (at the money). And the strike price of the call bought must be higher than the underlying (out of the money).
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    Input Underlying Price: {{data.strategy.underlyingPrice | currency}} Input Interest Rate: {{data.strategy.interestRate | number:1}}% Input Volatility: {{data.strategy.vol | number:1}}%
    Options:
    {{leg.implementation}}. {{leg.daysToExpire}} days to expire. {{leg.sharesContracts}} contracts. {{leg.pricePrem | currency}} premium. {{leg.strike | currency }} strike. {{leg.sharesContracts}} shares at {{leg.pricePrem | currency}}
    Underlying Stock Price G/L on {{priceDate |date:'MMMM dd, yyyy'}}
    {{pricePoint | currency}} {{gl | currency}} {{gl | currency}} {{gl | currency}}
    This is a P/L representation of what a Long Strangle will look like at expiration. The results of your inputs my vary.
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    When To Buy

    Maximum Profit

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    Long Strangle Illustrated

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