Sell ITM call + sell ITM put. Premium-rich short-vol structure; UNLIMITED risk.
Shape illustration on a normalized underlying — open the Lab below to price it on a real option chain.
Sell an in-the-money call and an in-the-money put, collecting a large credit that includes intrinsic value. Profit if the stock stays between the strikes, where you keep the credit minus the strike gap you must pay back.
Rarely — it is a short strangle expressed in ITM options. Only preferable when ITM pricing is unusually favorable.
UNLIMITED in both directions, like every naked short-vol structure. Assignment risk is real from day one because both options start in the money.
New to options? Start with the free curriculum — or see which strategy fits your outlook.
Educational content — not investment advice. Options involve substantial risk and are not suitable for every investor. All trading on Opus Options Trading is simulated.