Short Strangle Calculator
Sell an OTM call and put at different strikes: enter strikes, premiums and expiry price for the profit band and P&L.
Results
Fill in the inputs and click Calculate.
- Total Credit
- –
- Expiry P&L
- –
- Lower Break-even
- –
- Upper Break-even
- –
Risk disclaimer
Short options carry unlimited theoretical risk. Math only, not advice.
Short strangle vs short straddle?
A strangle uses two out-of-the-money strikes, giving a wider, more forgiving break-even band — usually for less total premium than a same-strike straddle.
Risk profile is the same: one-sided moves can cause uncapped losses.
How to use
- Enter the put strike (lower) and call strike (higher).
- Enter both premiums received.
- Enter the expiry price and calculate.
Formula
- Credit = put premium + call premium
- Expiry P&L = credit − in-the-money leg loss
- Lower BE = put strike − credit; upper BE = call strike + credit
Example
Put 19,000 / Call 21,000, credit 200 → profit while expiry stays between 18,800 and 21,200.
Losses start below 18,800 or above 21,200.
FAQ
Safer than a short straddle?
The band is usually wider, but losses remain uncapped — safety depends on the asset's moves and your sizing.