Also known as: In-the-Money Strangle
Buy ITM call + buy ITM put. Straddle cousin built from in-the-money legs.
Shape illustration on a normalized underlying — open the Lab below to price it on a real option chain.
Buy an in-the-money call (below spot) and an in-the-money put (above spot). Both legs carry intrinsic value, so the position always ends with at least the strike gap — you profit when the move exceeds what you paid over that gap.
A big-move thesis executed in deep options where spreads are sometimes tighter and time value smaller. Functionally a straddle in different clothing.
Maximum loss is the net debit minus the guaranteed strike gap — reached when the stock sits between the strikes at expiration. Compare pricing against the equivalent strangle before choosing this form.
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Educational content — not investment advice. Options involve substantial risk and are not suitable for every investor. All trading on Opus Options Trading is simulated.