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5.3. Short Guts

ProficiencyDirectionVolatilityAsset LegsMax RiskMax RewardStrategy Type
+
ExpertNeutralLow• Short CallUncappedCappedIncome
   • Short Put   


5.3.1. Description

The Short Guts is a simple adjustment to the Short Strangle that increases the net credit. Instead of selling OTM options, we sell ITM calls and puts, which creates a higher net credit. As with Short Straddles and Short Strangles, the risk we run with a Short Guts is uncapped on either side.


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