Short Guts
Description
Selling an in-the-money call and an in-the-money put, collecting a large premium on a bet that the underlying stays within a fairly wide range.
Setup
- Sell one in-the-money call, struck below the current price.
- Sell one in-the-money put, struck above the current price, same expiry.
Context
Used like a short strangle, when a large move is considered unlikely, with the in-the-money strikes producing a much larger up-front credit.
Risk Profile
Maximum gain is the combined premium collected, minus the intrinsic value already built into both strikes at entry, realized if the underlying finishes between the two strikes. Loss grows without bound on a large move in either direction.
Pros
- Collects a larger credit than a comparable short strangle.
- Wide range of underlying prices where the position is profitable.
- Benefits from a drop in implied volatility.
Cons
- Unlimited loss potential on a large move.
- Requires significant margin.
- More capital-intensive to manage than an out-of-the-money short strangle.
Effect of Time
Time decay favors the position, though a smaller share of the premium collected is pure time value compared to an out-of-the-money strangle.
Effect of Volatility
A rise in implied volatility hurts the position by inflating the value of both short options.
Look-Alike Strategies
Live Structure
| Position? | Right? | Ratio | Strike | Expiry | IV? | Premium? | Fill Price? | Liquidity? | Est. Fee? |
|---|---|---|---|---|---|---|---|---|---|
| Short | Call | 1 | $74000.0000 | 20 Nov 2026 | 39.2% | $2511.9784 | $2474.4862 | 2.1000 | $22.4953 |
| Short | Put | 1 | $76000.0000 | 20 Nov 2026 | 38.2% | $2474.4532 | $2436.9615 | 25.0000 | $22.4950 |
Net cost, breakevens, the payoff chart and the scenario table are after costs: every leg filled by crossing the spread, estimated fees included -- the same numbers the Scanner ranks by.
Estimated Cost to Assemble
An estimate of what entering this structure right now would really cost: filling every leg by crossing the spread (the ask when buying, the bid when selling) instead of at the mid-price, plus an estimated exchange fee. Real fees and fills can differ from this estimate.
Compare venues
These exact contracts -- same strikes, expiries and ratios -- on every venue BOSS tracks for this currency, at execution: what selling (bid) or buying (ask) each leg there comes to, after that venue's own fee. Green marks the best venue for each leg and for the whole structure.
| Deribit this page | Bybit | OKX | |
|---|---|---|---|
| Index? | $74857.6500 | $74949.6807 | $74863.0000 |
| Mid-Price Cost | -$4986.4316 | -$4982.5000 | -$4968.5555 |
| Slippage? | +$74.9839 | +$17.5000 | +$56.2478 |
| Estimated Fees? | +$44.9904 | +$45.1115 | +$44.9982 |
| Total Estimated Cost | -$4866.4573 | -$4919.8885$53.4300 better than this page | -$4867.3095$0.8500 better than this page |
| Max Profit? | $2866.4573 | $2919.8885 | $2867.3095 |
| Max Loss? | Uncapped | Uncapped | Uncapped |
| Breakeven(s)? | $71133.5427, $78866.4573 | $71080.1115, $78919.8885 | $71132.6905, $78867.3095 |
| Structure IV? | 38.7% | 38.0% | 38.5% |
| Open on this venue → | Open on this venue → |
Each leg: what it nets there per contract (fill price with the fee folded in), then the fill price, fee, IV and the size quoted at that price.
For comparing prices, not a recommendation: quotes move by the second, size is only what's shown at the top of the book, fees are each venue's published estimate, and the venues settle against different indexes and margin separately.
Market Context
This expiry as the Dashboard sees it: how the legs are priced against at-the-money and realized volatility, and where the expiry's forward sits against spot.
Volatility Smile?
Implied volatility across strikes at this expiry; the marked lines are this structure's strikes. Buying on the high part of the curve pays up for volatility; selling there collects it.
Leg bought Leg sold
Payoff & Greeks vs. Underlying Price
The Greeks curves are a Black-Scholes model using each leg's current implied volatility, holding time to expiry fixed -- not live exchange data at every price, which only exists at the current price (dashed line).
Payoff at Expiration
After costs At mid price
This structure's value and profit/loss at expiration, at a handful of specific prices: every leg's strike, every breakeven, the current spot, and the chart's own range.
| Underlying Price | Value at Expiration | Profit / Loss | Return on Cost |
|---|---|---|---|
| $71133.5427 breakeven | -$4866.4573 | $0.0000 | +0.0% |
| $72000.0000 | -$4000.0000 | $866.4573 | +17.8% |
| $74000.0000 | -$2000.0000 | $2866.4573 | +58.9% |
| $74983.4300 current | -$2000.0000 | $2866.4573 | +58.9% |
| $76000.0000 | -$2000.0000 | $2866.4573 | +58.9% |
| $78000.0000 | -$4000.0000 | $866.4573 | +17.8% |
| $78866.4573 breakeven | -$4866.4573 | $0.0000 | +0.0% |
Delta (model)?
Gamma (model)?
Vega (model)?
Theta (model)?
Rho (model)?
Alternatives
From the Scanner's latest pass (21:35:48 UTC), priced at execution like everything above.
Same payoff through other strategies
| Strategy | Market | vs. this one | Credit/Debit | Max Profit? | Max Loss? | Prob. of Profit? | Max Profit / Max Loss? |
|---|---|---|---|---|---|---|---|
| Short Strangle74000/76000 | Bybit · BTC | $68.4264 | -$2934.8837 | $2934.8837 | Uncapped | 57% | — |
| Short Strangle74000/76000 | OKX · BTC | $50.9439 | -$2917.4012 | $2917.4012 | Uncapped | 58% | — |
| Short Strangle74000/76000 | Deribit · BTC | $13.3029 | -$2879.7602 | $2879.7602 | Uncapped | 57% | — |
Other strikes and widths of this strategy
None found in the latest scan.