What a long strangle is and how to set one up on WeBull
A long strangle is an options trade where you buy two contracts on the same stock: one call option at a higher strike price and one put option at a lower strike price, both expiring on the same date. You profit if the stock moves sharply in either direction — up past the call strike or down past the put strike — by more than the total cost of both premiums you paid. On WeBull, you place this trade by opening the options chain for your chosen stock, selecting your strikes and expiration date, then submitting both legs as a single multi-leg order.
The appeal of a strangle is that you don't have to guess which direction the stock will move, only that it will move far enough to cover what you paid for both options. The risk is capped at the total premium you spent, but that premium can be substantial since you're buying two contracts instead of one.
Key Takeaways
- A long strangle requires buying a call option above the current stock price and a put option below it, both expiring the same day.
- WeBull's multi-leg order tool lets you build and submit both legs together, which is faster and more reliable than placing them separately.
- You need options approval level 2 or higher on your WeBull account to trade spreads and multi-leg strategies.
- The stock must move past one of your strike prices by more than your total cost to turn a profit.
Check your options approval level on WeBull
Before you can place a strangle, WeBull requires you to have options approval level 2 or higher. Level 1 allows only covered calls and cash-secured puts. Level 2 and above permit spreads and multi-leg trades like strangles.
To check your approval level, open WeBull, tap the Account menu, select Settings, then scroll to Options Approval Level. If you see Level 1, you'll need to request an upgrade. Tap "Upgrade" and answer WeBull's questions about your trading experience and risk tolerance. WeBull typically approves upgrades within one business day, though some accounts are approved when ready.
Navigate to the options chain and select your strikes
Open WeBull and search for the stock you want to trade. Tap the Options tab at the bottom of the stock detail page. You'll see the options chain — a table showing all available call and put contracts for different strike prices and expiration dates.
For a long strangle, you need to pick two different strike prices. The call strike should be above the current stock price (out of the money), and the put strike should be below it (also out of the money). For example, if a stock trades at $100, you might buy a $105 call and a $95 put. The wider apart your strikes, the cheaper both premiums will be, but the stock has to move further to profit. Closer strikes cost more but require less movement.
Tap on the call strike price first to see the bid-ask spread and the premium you'll pay. Note the price. Then navigate back and tap the put strike price to see its premium. Add both premiums together — that's your total cost and your maximum loss.
Build the multi-leg order in WeBull
Once you've chosen both strikes, look for the multi-leg order button. On WeBull's mobile app, this is usually a button labeled "Multi-Leg" or a plus icon near the order entry area. On the web platform, it's in the order builder section. Tap or click it to open the multi-leg order form.
WeBull will show you two rows: one for the call leg and one for the put leg. In the first row, set the contract type to Call, enter your call strike price, select your expiration date, and set the quantity (usually 1 contract). Set the order type to Buy. In the second row, do the same but select Put instead of Call, and enter your put strike price.
Double-check that both legs show the same expiration date and that the quantities match. The order type for both should be Buy. Once everything looks correct, review the total debit — this is the total premium you'll pay upfront.
Submit the order and monitor the fill
Tap or click Submit to send the multi-leg order to the market. WeBull will send both legs simultaneously. Because you're buying both the call and the put, you're paying the ask price on each, which means the order is more likely to fill quickly than if you were selling.
Watch the order status in your Activity or Orders section. If the order fills, both legs will show as filled and you'll see the trade in your positions. If only one leg fills and the other doesn't, WeBull may cancel the entire order to keep the trade balanced — this is called a "all-or-none" protection and is standard for multi-leg orders.
If your order doesn't fill within a few minutes, you can cancel it and resubmit at a different price, or wait for the market to move closer to your bid. On WeBull, you can also set a limit price for the entire spread, which tells the system the maximum total debit you're willing to pay for both legs combined.
Understand your profit and loss zones
Once your strangle is filled, your profit zone has two parts. If the stock rises above your call strike plus your total cost, you profit on the call side. If the stock falls below your put strike minus your total cost, you profit on the put side. In between those two zones, you lose money.
For example, if you paid $200 total ($100 for the call, $100 for the put), and your strikes are $105 call and $95 put, you break even at $107 on the upside ($105 + $2) and $93 on the downside ($95 - $2). Above $107 or below $93, you're in profit. Between $93 and $107, you're in a loss.
Your maximum loss is always the total premium you paid — in this case, $200. Your maximum profit is theoretically unlimited on the upside (if the stock soars) and large on the downside (if the stock crashes), but in practice you'll close the trade before expiration to lock in gains or cut losses.
Close the strangle before or at expiration
You don't have to hold a strangle until expiration. Most traders close it early when the profit target is hit or the loss limit is reached. To close, go to your Positions section, find the strangle, and tap Sell to Close. WeBull will automatically sell both legs at market prices.
If you hold the strangle to expiration and it's in the money on one or both sides, WeBull will exercise the in-the-money contracts automatically. This means you'll either be assigned stock (if the put is in the money) or have stock called away (if the call is in the money). If both are in the money, you'll be assigned on the put and have the stock called away on the call, netting out to zero shares but locking in your profit or loss.
Frequently Asked Questions
What's the difference between a strangle and a straddle?
A straddle uses the same strike price for both the call and put, while a strangle uses different strikes. A straddle costs more upfront because both contracts are at the money, but it requires less stock movement to profit. A strangle costs less but needs bigger price swings.
Can I place a strangle with different expiration dates?
Technically yes, but WeBull's multi-leg order tool is designed for same-date expirations. If you want different dates, you'd have to place the legs separately, which is riskier because one might fill and the other might not. Most traders stick to same-date strangles.
What happens if only one leg of my order fills?
WeBull's multi-leg orders are typically all-or-none, meaning if one leg doesn't fill, the whole order cancels. This protects you from being stuck with just a call or just a put. If you want to allow partial fills, you can change the order settings, but that's not recommended for strangles.
Do I need cash in my account to place a strangle?
Yes. WeBull will reserve the full debit amount (total premium for both legs) from your buying power when you submit the order. If you don't have enough cash, the order will be rejected. The cash is released once the order fills.
Can I adjust a strangle after I've placed it?
You can close the entire strangle and open a new one with different strikes or expiration dates, but you can't modify the existing trade in place. Some brokers offer spread adjustments, but WeBull doesn't have that feature built in for options.