Short Guts
Components
Sell one call option and sell one put option at a higher strike price.
Risk / Reward
Maximum Loss: Unlimited as the market moves in either direction.
Maximum Gain: Limited to the net premium received for selling the options.
Characteristics
A short guts has the same profile as a Short Strangle except a guts strategy involves ITM options, whereas a strangle trades OTM options.
Comments page 1 of 1
Depends on the premiums of both strategies. Guts would be more expensive as they are ITM options.
how to make choice bet strangle and gut ?
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