Also known as: Long Strangle
Long OTM call + long OTM put. Cheaper than a straddle, needs a bigger move.
Shape illustration on a normalized underlying — open the Lab below to price it on a real option chain.
Buy an out-of-the-money call and an out-of-the-money put. Cheaper than a straddle; needs an even bigger move to pay.
Same big-move thesis as the straddle at lower cost and lower odds.
Both premiums at risk, and the stock must clear a wider distance before either side pays. Most strangles expire worthless — the ones that do not can pay many times over.
Similar: Same directionless long-volatility bet.
Different: Cheaper entry, wider breakevens — you pay less but need more movement.
Similar: Both hold a call and a put on the same expiration.
Different: Guts uses in-the-money strikes, so most of its cost is intrinsic value rather than time premium.
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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.