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Short Strangle Option Calculator
Sell OTM call and OTM put. Credit if price stays between strikes.
How this Short Strangle calculator works
This free Short Strangle profit calculator estimates profit and loss across stock prices and dates. Use live quotes and the option chain (via the local data proxy), then review max profit, max loss, breakevens, ROI on risk, probability of profit, and a date × price heatmap or numerical matrix.
- At expiration: intrinsic payoff for each option leg (and stock, if included).
- Before expiration: Black–Scholes theoretical value using each leg’s IV and DTE.
- Multi-expiry: near-term legs settle first; longer-dated legs keep remaining time value.
Typical legs for a Short Strangle
Default template legs (edit freely or replace from the option chain):
- Leg 1: sell call @ strike template 110
- Leg 2: sell put @ strike template 90
When traders use a Short Strangle
Market outlook: neutral. Use the calculator to stress-test strikes and premiums before placing an order. Options involve substantial risk of loss and are not suitable for every investor.
Frequently asked questions
What is a Short Strangle options strategy?
Sell OTM call and OTM put. Credit if price stays between strikes.
How do I calculate profit and loss for a Short Strangle?
Enter the underlying price, strikes, premiums, and contracts in the Short Strangle calculator. The tool shows max profit, max loss, breakeven points, and a P/L heatmap from now until expiration using Black–Scholes before expiry and intrinsic value at expiration.
Is the Short Strangle strategy neutral?
This strategy is generally considered neutral in market outlook. Always confirm risk, margin, and assignment rules with your broker before trading.
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