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Long Gut Spread Risk Graph

Long Gut Spread - Components

Buy an ITM call option and an ITM put option on the same underlying stock.

Buy ITM Call + Buy ITM Put



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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