What is name of this options position (Little help, please)?

Been on here a long time but can't seem to recover my old nick (hence the new account)

Can anybody shed some light on what is the actual name for this position?
- Short ITM put
- Short ITM call
- Long OTM put
- Long OTM call

Same expiry and quantity for all 4.

Is that an inverted strangle with wings?
I guess it's slightly asymmetric from looking at the TOS profit/loss chart but it doesn't have to be.

Dest or one of you other options guru/heavies, can you help me out here?

Thanks in advance.

M

 

For clarity's sake, what is your old nick?

 

Just "TheGoonior". These days I just lurk and it looks like my last post was almost 5 years ago.

 

Not an ops guy but I think that is a vertical spread sorta?

 

If this was :

- Long ITM put
- Long ITM call
- Short OTM put
- Short OTM call

...then it would be a 'Box spread'.

But as you are doing the opposite, then I guess you could call this a 'short box spread', ie. you are selling the box spread as opposed to buying it.

 

If it were an OTM put vertical and an OTM call vertical, I think it would be an iron condor.
A strangle is also normally OTM and I believe it's called "inverted" if your put/call are both ITM.
The long OTM wings are just that.
Perhaps it doesn't even have a name (IB just lists it as a "combo")
Since it has the same P&L curve as an iron condor, perhaps it's better termed a synthetic? (not sure if I'm using that term appropriately here).

Anyway, that's why I hoping some of the local options masters will chime in to:
a) identify this baby
b) potential issues with the position

I'm most interested in b as the only risk I currently see is possible assignment risk and maybe a margin call at a unfavorable time due to draconian IB "auto-liquidate"

Note also that this position does not require "legging" in to achieve.

Also of note is that I don't claim to be an options master by any stretch. I'm just trying to identify potential foolishness as I just can't seem to pick a hole in it.

Thanks

 

And my understanding of the major risk of a box spread is assignment risk, correct? I recall seeing a video where some RobinHood guy (Ir0nyman) loaded up on a ton of contracts and then got crushed.

 

FFS1001, I think you nailed it. Looks like a short box spread. For those who are interested, here's the ironyman link


Seems like major risk (other than ridiculous over leverage) is assignment and auto-liquidation.

 

I am curious if you are using same strikes or putting your long positions inside or outside your short positions? I played with your idea with SPY and just figuring out what you are wishing to accomplish?

 

I edited your OP with strikes. You would be short the 90-110 box. Short the guts/inside; long the outside.