What is name of this options position (Little help, please)?

T

TheGoonior2

Been on here a long time but can't seem to recover my old nick (hence the new account)

Can anybody shed some light on what is the actual name for this position?
- Short ITM put
- Short ITM call
- Long OTM put
- Long OTM call

Same expiry and quantity for all 4.

Is that an inverted strangle with wings?
I guess it's slightly asymmetric from looking at the TOS profit/loss chart but it doesn't have to be.

Dest or one of you other options guru/heavies, can you help me out here?

Thanks in advance.

M
 

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TheGoonior2 said:
Been on here a long time but can't seem to recover my old nick (hence the new account)

Can anybody shed some light on what is the actual name for this position?
- Short ITM put
- Short ITM call
- Long OTM put
- Long OTM call

Same expiry and quantity for all 4.

Is that an inverted strangle with wings?
I guess it's slightly asymmetric from looking at the TOS profit/loss chart but it doesn't have to be.

Dest or one of you other options guru/heavies, can you help me out here?

Thanks in advance.

M
More...

For clarity's sake, what is your old nick?
 
If this was :

- Long ITM put
- Long ITM call
- Short OTM put
- Short OTM call

...then it would be a 'Box spread'.

But as you are doing the opposite, then I guess you could call this a 'short box spread', ie. you are selling the box spread as opposed to buying it.
 
If it were an OTM put vertical and an OTM call vertical, I think it would be an iron condor.
A strangle is also normally OTM and I believe it's called "inverted" if your put/call are both ITM.
The long OTM wings are just that.
Perhaps it doesn't even have a name (IB just lists it as a "combo")
Since it has the same P&L curve as an iron condor, perhaps it's better termed a synthetic? (not sure if I'm using that term appropriately here).

Anyway, that's why I hoping some of the local options masters will chime in to:
a) identify this baby
b) potential issues with the position

I'm most interested in b as the only risk I currently see is possible assignment risk and maybe a margin call at a unfavorable time due to draconian IB "auto-liquidate"

Note also that this position does not require "legging" in to achieve.

Also of note is that I don't claim to be an options master by any stretch. I'm just trying to identify potential foolishness as I just can't seem to pick a hole in it.

Thanks
 
ffs1001 said:
If this was :

...then it would be a 'Box spread'.
More...
And my understanding of the major risk of a box spread is assignment risk, correct? I recall seeing a video where some RobinHood guy (Ir0nyman) loaded up on a ton of contracts and then got crushed.
 
TheGoonior2 said:
Been on here a long time but can't seem to recover my old nick (hence the new account)

Can anybody shed some light on what is the actual name for this position?
- Short ITM put
- Short ITM call
- Long OTM put
- Long OTM call

Same expiry and quantity for all 4.

M
More...

I am curious if you are using same strikes or putting your long positions inside or outside your short positions? I played with your idea with SPY and just figuring out what you are wishing to accomplish?

longlegsinside.PNG longlegsoutside.PNG matchinglegs.PNG
 
Last edited:
TheGoonior2 said:
Been on here a long time but can't seem to recover my old nick (hence the new account)

Can anybody shed some light on what is the actual name for this position?
- Short ITM put 110
- Short ITM call 90
- Long OTM put 90
- Long OTM call 110

shares at 100

Same expiry and quantity for all 4.

Is that an inverted strangle with wings?
I guess it's slightly asymmetric from looking at the TOS profit/loss chart but it doesn't have to be.

Dest or one of you other options guru/heavies, can you help me out here?

Thanks in advance.

M
More...

I edited your OP with strikes. You would be short the 90-110 box. Short the guts/inside; long the outside.
 
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