Strangle Breakeven Calculator
A long strangle buys an out-of-the-money call and an out-of-the-money put on the same underlying and expiration, profiting when price makes a large move in either direction. Because both options start out of the money, the position is cheaper than a straddle but needs a bigger move to pay off. This calculator takes your call strike, put strike, and the two premiums and returns the upper breakeven, the lower breakeven, your total premium outlay, and the maximum loss, all on a per-share and per-contract basis so you can size the trade before placing it.
Strangle breakeven formula
Total premium per share = call premium + put premium
Upper breakeven = call strike + total premium per share
Lower breakeven = put strike - total premium per share
Max loss per contract = total premium per share * contract multiplier
The maximum loss occurs when the underlying expires between the two strikes, leaving both options worthless. Profit is unlimited above the upper breakeven and large (down to zero underlying) below the lower breakeven.
Using the result
- The wider the gap between strikes, the cheaper the strangle but the larger the move required.
- Both breakevens widen by the full premium, so paying less premium tightens the profit zone boundaries.
- A standard US equity option contract controls 100 shares; adjust the multiplier for non-standard contracts.
- Add broker commissions to the total premium for a live-trade breakeven.
- Time decay (theta) works against a long strangle, so the move must happen before expiration.
Strangle breakeven: frequently asked questions
What is a long strangle?
A long strangle is an options strategy where you buy an out-of-the-money call and an out-of-the-money put on the same underlying with the same expiration but different strike prices. It profits from a large move in either direction. Your maximum loss is the total premium paid if the underlying expires between the two strikes.
How do you calculate strangle breakeven points?
A long strangle has two breakevens. The upper breakeven is the call strike plus total premium paid per share. The lower breakeven is the put strike minus total premium paid per share. The underlying must move beyond one of these points by expiration for the position to be profitable.
What is the maximum loss on a long strangle?
The maximum loss on a long strangle is the total premium paid, which equals the call premium plus the put premium, multiplied by the contract multiplier (typically 100 shares per contract). This loss occurs if the underlying price finishes between the two strikes at expiration, leaving both options worthless.
How does a strangle differ from a straddle?
A straddle uses the same strike for the call and put (usually at the money), while a strangle uses two different out-of-the-money strikes. A strangle costs less premium because both options start out of the money, but it requires a larger move in the underlying to reach breakeven.
Does this calculator account for commissions?
No. The breakeven figures shown reflect only the strike prices and premiums you enter. Real trades include broker commissions and fees that widen the breakeven points slightly. Add your per-contract fees to the total premium for a more precise breakeven on a live trade.
Official sources
- U.S. SEC Investor.gov: Options glossary.
- The Options Clearing Corporation (OCC): Standard equity option contract specifications.
Reviewed by the CalculatorHub team, edited by James Graham, 17 June 2026. See our methodology.