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Long Gut Spread

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Long Gut Spread Risk Graph
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Long Gut Spread - Components
A Long Gut Spread consists of buying an equal number of In The Money (ITM) Put options and In The Money (ITM) Call options in order to make unlimited profit when the stock either goes up or down.

Buy ITM Put + Buy ITM Call



Long Gut Spread - Expectation

Volatile



Long Gut Spread - Risk / Reward

Maximum Profit: Unlimited

Maximum Loss: Limited



Long Gut Spread - Breakeven Point

Upper Break Even Point = Call Strike + Net Debit

Lower Break Even = Put Strike - Net Debit



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