An options strategy involving the simultaneous purchase (or sale) of an out-of-the-money call and put with the same expiry.
A strangle is similar to a straddle but uses an out-of-the-money call and an out-of-the-money put with different strike prices and the same expiry. A long strangle is cheaper to set up than a long straddle because both legs are OTM, but it requires a bigger price move to become profitable. A short strangle collects premium from both sides and profits when the underlying stays within the range defined by the two strikes.
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