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Guts Spread




An expensive strategy where the trader buys OTM calls and puts to replicate the risk profile of a Strangle.

Far cheaper to trade the Strangle.

Related Terms:

Strangle
A "Strangle" is an option strategy that gives you the potential to profit in a trade ...

Ratio Put Spread
A bullish strategy that involves the trader being short in more, lower Strike puts than those ...

Ratio Backspread
A strategy using all puts or all calls whereby the trader buys OTM options in a ...





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