Buy one call option and buy one put option at a higher strike price.
Maximum Loss: Limited to the total premium paid plus (call strike price minus put strike price).
Maximum Gain: Unlimited as the market moves in either direction.
When to use: When you are bullish on volatility but are unsure of market direction.
A long guts has the same profile as a Long Strangle. The difference is that with a guts you only buy ITM options. A strangle you buy OTM options.