CIPLA Strangle Price Analysis
Advanced options strategy analysis with dual strike selectionAnalysis Options
Symbol
CIPLA
Expiry Date
27-Feb-2025
Call Strike Price
1200
Put Strike Price
1200
Live Updates
Historical Date
1x Speed
Strangle Strategy
Advanced Charts
Market Insights
Understanding the Strangle Strategy
A strangle is an options strategy where the trader holds positions in out-of-the-money (OTM) call and put options with the same expiration date but different strike prices. This strategy can be profitable when there are significant price movements in either direction.Key Features
- Dual Strike Selection: Independently choose strike prices for call and put options to customize your strangle strategy
- Real-time Monitoring: Track strangle positions with live updates and automatic price refreshes
- Multiple Chart Views: Analyze data through different chart visualizations including line, candlestick, or combined views
- Historical Analysis: Access and analyze past strangle price data for better decision making
When to Use Strangle Strategy
Consider implementing a strangle strategy in these scenarios:
- High Volatility Expected: Before major market events or announcements
- Low Implied Volatility: When options are relatively cheap, offering better risk-reward potential
- Range Breakout Expected: When price has been consolidating and a significant move is anticipated
- Market Uncertainty: During periods of potential market-moving events with unclear directional bias
Risk Management
Important Risk Considerations
Trading strangles requires careful risk management. The strategy involves buying both call and put options, which means paying two premiums. The underlying asset needs to make a significant move to overcome the combined premium cost. Always use appropriate position sizing and maintain clear exit strategies for both profit taking and loss limitation.