A long strangle means buying a call option and a put option on the same stock, with different strike prices

A long strangle is a two-part options trade where you buy an out-of-the-money call (betting the stock price will rise) and an out-of-the-money put (betting it will fall) at the same time. You profit if the stock moves sharply in either direction before both options expire. The trade costs less upfront than buying both an in-the-money call and put, but requires larger price movement to turn a profit.

On WeBull, you place a long strangle by opening two separate options orders in sequence: first the call, then the put (or vice versa). WeBull does not bundle them into a single "strangle" order the way some brokers do. You control the strike prices and expiration dates yourself, so you decide how far out-of-the-money each leg sits.

Key Takeaways

  • You must have options trading turned on in your WeBull account, which requires approval at the Standard level or higher.
  • Buy the call option first, then buy the put option separately—WeBull treats them as two independent trades, not a single strangle package.
  • Choose strike prices below the current stock price for the put and above it for the call; how far out depends on how much movement you expect.
  • Both options must have the same expiration date if you want them to close together, though you can set different dates if your strategy requires it.
  • Your maximum loss is the total premium you paid for both options combined; your maximum gain is unlimited on the call side and limited on the put side.

Check your account approval level for options trading

WeBull requires you to request and receive options trading permission before you can place any options order. Log into your account, go to Account Settings, and look for the Options Trading section. If you see "Not Approved" or no options section at all, you need to submit a request.

WeBull offers three approval levels: Standard (covered calls and cash-secured puts only), Intermediate (spreads and strangles allowed), and Advanced (all strategies including naked calls). To place a long strangle, you need at least Intermediate approval. The approval process is usually instant or takes one business day. Once approved, you can begin placing strangle trades immediately.

Navigate to the options chain and select your call strike

Search for the stock you want to trade in WeBull's search bar. Click on the stock name to open its detail page. Scroll down or look for the "Options" tab to view the options chain—a table showing all available call and put options for that stock, organized by expiration date and strike price.

Select an expiration date first. For a strangle, pick a date at least 30 to 60 days out; shorter expirations decay faster and require bigger price moves. Once you pick the date, the chain updates to show only options expiring on that day. Find the call option with a strike price above the current stock price—typically 5 to 10 percent higher for a moderate strangle, or further out if you expect a large move. Click on that call to open the order ticket.

Place your call order and confirm the fill

The order ticket opens on the right side of your screen. WeBull defaults to a market order, which fills immediately at the current bid-ask price. For options, market orders can be expensive because the bid-ask spread is often wide. Instead, click the order type dropdown and select "Limit," then enter a price between the bid and ask—usually closer to the bid if you want the order to fill quickly.

Enter the quantity (usually 1 contract = 100 shares of the underlying stock). Review the estimated cost at the bottom of the ticket. Click "Submit" to send the order. Wait for the order status to show "Filled" before moving to the put. If your limit order does not fill within a few minutes, you can cancel it and try again with a slightly higher price, or switch back to a market order.

Return to the options chain and select your put strike

Once your call order fills, go back to the options chain for the same stock. Make sure you are still looking at the same expiration date as your call—this is critical for a strangle to work as intended. Scroll down to the put options section. Select a put strike price below the current stock price, typically 5 to 10 percent lower to match the distance of your call strike.

The wider apart your two strikes are, the less you pay upfront but the more the stock has to move for you to profit. A tighter strangle (strikes closer to the current price) costs more but needs less movement. Click on your chosen put option to open its order ticket.

Place your put order and monitor both positions

Follow the same process as the call: select Limit order type, enter a price between bid and ask, set quantity to 1, and click Submit. Once this order fills, you now own both the call and the put—your long strangle is open.

WeBull shows both positions in your Portfolio tab under "Options." You will see the call and put listed separately, each with its own current value, profit or loss, and days to expiration. As the stock price moves, both options will gain or lose value. If the stock rises sharply, your call gains value and your put loses it. If it falls sharply, the opposite happens. You close the strangle by selling both options back—sell the call first, then the put, or vice versa—before expiration or on expiration day itself.

Understand the cost, risk, and breakeven points

Your total cost is the sum of the premiums you paid for both the call and the put. This is also your maximum loss if the stock price stays between your two strike prices at expiration. For example, if you paid $2 for the call and $1.50 for the put, your max loss is $350 (3.50 × 100 shares per contract).

Your breakeven points are the call strike price plus the total premium paid (upper breakeven) and the put strike price minus the total premium paid (lower breakeven). If you bought a $100 call and a $95 put and paid $3.50 total, you break even at $103.50 on the upside and $91.50 on the downside. The stock must move beyond one of these points for you to profit. Your maximum gain on the call side is unlimited; your maximum gain on the put side is capped at the put strike price minus the premium.

Frequently Asked Questions

Can I place both legs of the strangle in a single order on WeBull?

No. WeBull requires you to place the call and put as two separate orders. Some brokers offer a "strangle" order type that bundles them, but WeBull does not. You must buy the call, wait for it to fill, then buy the put. This takes only a few minutes but means the prices you lock in are slightly different.

What happens if one leg fills but the other does not?

You will own only the filled leg—either just the call or just the put—which is no longer a strangle. You can cancel the unfilled order and place a new one at a different price, or let it sit and try again later. To avoid this, use limit orders close to the current bid-ask midpoint so both fill quickly.

Can I use different expiration dates for the call and put?

Yes, WeBull allows it. However, a true strangle usually has both legs expiring on the same date. If you use different dates, one leg will expire first, leaving you with only a call or put—which changes your risk profile. Most traders keep both dates the same.

How do I close a long strangle on WeBull?

Go to your Portfolio, find the call and put in your Options section, and click the sell button on each one. Sell them separately, one at a time. You can sell both on the same day or close them at different times depending on your strategy. Close them before expiration day to avoid assignment.

What if the stock price is exactly at one of my strike prices at expiration?

If the call is at-the-money, it may be assigned (you sell 100 shares at the strike price). If the put is at-the-money, it may be assigned (you buy 100 shares at the strike price). WeBull will notify you of any assignment. To avoid this, close both positions before the market closes on expiration day.