Strangle
A strategy involving the simultaneous purchase (or sale) of an OTM call and OTM put with the same expiration.
Explanation
Similar to a straddle but uses different (OTM) strikes, making it cheaper to enter but requiring a larger move to profit. Short strangles are popular premium-selling strategies with a wider profit zone than straddles. The short strangle collects less premium but has a higher probability of profit.
Example
Sell the 140 put and 160 call on AAPL for a total credit of $3.00. You profit if AAPL stays between $137 and $163 at expiration.