Short Guts Option strategy involves selling in-the-money Call and Put options at the same time for the same security and expiry date, where the strike prices of both the options are at equidistance from the underlying price. A trader opts for this strategy when he expects less volatility. It’s a credit spread strategy, as the trader receives the premium on both the options at the start of the trade, which is limited profit but at the cost of a very high risk of losing money if the strategy fails as there are no caps on price movements.

Download this template for a one-time fee of $15 and use with your MarketXLS subscription

Instant Delivery, One time price, exclusively made for MarketXLS users

Important: This template is only recommended as a purchase if you are an existing MarketXLS Subscriber with an active license Pro Plus or Pro Plus RT plan (get your subscription here)

This template uses MarketXLS functions to pull information. Without an active MarketXLS subscription it will not be useful. Read terms before purchasing

See how MarketXLS helps you take advantage in the markets.