Long Strangle

Buying a call option and a put option on the same underlying security with different strike prices and the same expiration date to profit from a significant price move in either direction.

Description:

A long strangle is an options strategy that involves buying a call option and a put option on the same underlying security with different strike prices and the same expiration date. The strategy is designed to profit from a significant price move in either direction and is typically used in a neutral market outlook.
The trader profits from the strategy if the price of the underlying security moves significantly away from the strike prices of the options in either direction before expiration. If the price of the security remains close to the strike prices at expiration, both the call option and the put option expire worthless and the trader suffers a loss equal to the net debit paid to enter the position.

Breakeven:

Leg 1 minus the net debit.
Leg 2 plus the net debit

Sweet Spot:

Stock goes all the way up or all the way down

Max Profit:

The maximum profit is unlimited in both directions and is equal to the difference between the price of the underlying security and the strike price of the options at expiration.

Max Loss:

Limited to the net debit paid.