what is the name of this strategy

[ADX_trader]

If the current price of the underlying is $40 and I buy one $41 call and a $39 put (i.e. both are OTM) of the same expiration what is the name of such strategy? Is it still a straddle?

 

[Maverick74]

Quote from ADX_trader:

If the current price of the underlying is $40 and I buy one $41 call and a $39 put (i.e. both are OTM) of the same expiration what is the name of such strategy? Is it still a straddle?

Strangle. Although the strikes will be 35 and 45. I've never seen dollar strikes on equities.

 

[ADX_trader]

Then what is the opposite: call at 39 and a put at 41 i.e. 2 ITM?

 

[Maverick74]

Quote from ADX_trader:

Then what is the opposite: call at 39 and a put at 41 i.e. 2 ITM?

It's called buying the guts.