what advantages Long Gut over Strangle?

destriero said:
lol!

900C/1100P guts at 240 prem.
900P/1100C outside at 40 prem.

Duh! 200 points moar premium!

Dude, equivalent. It's the box arbitrage. Don't trade the guts unless you're a tax cheat or stupid (ostensibly both). The only utility (at retail) of the guts is to defer the closure of the position into the new tax year (or arbitrage). Nobody is going to quote you a box at edge. Do you think your fills will be better or worse trading DITM legs? C'mon. WTF.
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I see that Everybody misinterprets stuff sometimes. Not a big deal.
 
old coot said:
Here's an easy one, AMZN closed at exactly 3200. so, the ITM(In the money) (long guts) position of 3190 calls and 3210 puts cost 83.60(calls) and 79.39( puts) for a combined 162.99. Worst case, the stock closes at 3200 next Friday. You get a total of $20...$10 for the calls and $10 for the puts. which is "The ITM position will at least give you something in every scenario"
On the other hand, the OTM(out of the money) position of 3210 calls and 3190 puts cost $73.60(calls) and $68(puts) for a combined $141.60 If, worst case, AMZN expires anywhere between 3190 and 3210 you get zero, which is "whereas the OTM may not"
I know this may seem complicated, but it's not. In the worst case with the In the Money position, you get $10 for puts plus $10 for calls, total $20... and in the worst case in the Out of the Money position, you get $0.

Actually, it don't even seem complicated.
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Please, pull your head out of your ass.

Price an AMZN 2600/2800 inside and outside strangle and then rip your ethernet out of your router.
 
Try harder or stay silent.

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MIRACULOUS! 200-wide and *400* pts ITM and they are a nickel off.
 
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The block keeps me from having to reply on future posts. You went thru this elaborate diarrhea which is comically wrong. All that is needed is to price deep ITM on both the inside and outside. Solve for a move from 2700 to 3200 and the result is what was shown in my last pic.

What are the risks of trading the guts and receiving the large(r) credit balance? You are not in the box so assignment will leave you with D1 exposure. There is no opposing synthetic which keeps you flat exposure.

C’mon Man, think!
 
destriero said:
The block keeps me from having to reply on future posts. You went thru this elaborate diarrhea which is comically wrong. All that is needed is to price deep ITM on both the inside and outside. Solve for a move from 2700 to 3200 and the result is what was shown in my last pic.

What are the risks of trading the guts and receiving the large(r) credit balance? You are not in the box so assignment will leave you with D1 exposure. There is no opposing synthetic which keeps you flat exposure.

C’mon Man, think!
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My numbers are right. If you can't stand being wrong, I couldn't care less. Be a child, block me. All I ever see in your posts are insults and braggadocio anyway. Whoever told me you were "the man" was severely wrong. My life is better for not having to look at your stupid shit. I answered the question from the original post and gave the math to show why . You just bloviated.
 
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