Guts Spread
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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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