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Gut Spread

 

An option strategy created by selling an in-the-money put at the same time as an in-the-money call.

Investopedia Says:
By entering into this position, the investor, receiving a large premium up-front, hopes that the options expire worthless.

Related Links:
An introduction to the world of options, covering everything from primary concepts to how options work and why you might use them. Options Basics Tutorial


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