what is the name of this strategy

Discussion in 'Options' started by ADX_trader, May 9, 2004.

  1. If the current price of the underlying is $40 and I buy one $41 call and a $39 put (i.e. both are OTM) of the same expiration what is the name of such strategy? Is it still a straddle?
  2. Maverick74


    Strangle. Although the strikes will be 35 and 45. I've never seen dollar strikes on equities.
  3. Then what is the opposite: call at 39 and a put at 41 i.e. 2 ITM?
  4. Maverick74


    It's called buying the guts.