Sell OTM call + sell OTM put. Wider profit zone than a short straddle; UNLIMITED risk.
Shape illustration on a normalized underlying — open the Lab below to price it on a real option chain.
Sell an out-of-the-money call and an out-of-the-money put. A wider profit zone than the short straddle in exchange for less premium.
The premium-seller's workhorse in rich-volatility regimes: the stock can drift either way and both options still expire worthless. Width is chosen from the expected move.
UNLIMITED beyond either short strike. The defined-risk version is the iron condor — same shape, wings bought, sleep retained.
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.