What is the max profit of a short guts?

Limited: there is a ceiling on what it can make. The calculator gives the figure for your strikes and expiration.

What is the max loss of a short guts?

Unlimited: the loss keeps growing the further the price moves against it. The calculator gives the figure for your strikes and expiration.

How do I calculate a short guts's profit and loss?

Open the short guts in the strategy calculator. It places the legs on a real expiration, and you can drag the strikes, change the date, and read profit and loss by price and date, with max profit, max loss, and the breakevens.

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Short guts calculator

Sell an ITM call and ITM put. A rich short strangle with undefined risk.

Open in the calculator All strategies

OutlookNeutral

Max profitLimited

Max lossUnlimited

LevelExpert

What is a short guts?

Short guts collects a large credit because both options are in the money. The stock must stay between the strikes or risk is unlimited / near-stock.

Legs

Sell an ITM call
Sell an ITM put

Payoff at expiration, sketched. The live example below has the real prices.

Live example on SPY

Net credit$3,743.00

Max lossUnlimited

Max profit$3,443.00

Chance of profitLocked: ProUpgrade

BreakevensBetween $719.57 − $791.43At expiration

Est. margin$147,357.00

754C−112/18 · $20.51
757P−112/18 · $16.92

SPY · Oct 30, 2026, 3:59 PM ET

With SPY at 755.53, on the Dec 18 expiration (49 days out): sell 1 754 call and sell 1 757 put. Net credit $3,743. Max profit $3,443; max loss unlimited. Breakevens at expiration: Between $719.57 − $791.43.

Open this short guts in the calculator to move the strikes, change the date and implied volatility, and read profit and loss by price and date.

Questions

What is a short guts?: Short guts collects a large credit because both options are in the money. The stock must stay between the strikes or risk is unlimited / near-stock.
When does a short guts make money?: Sell an ITM call and ITM put. A rich short strangle with undefined risk.
What is the max profit of a short guts?: Limited: there is a ceiling on what it can make. The calculator gives the figure for your strikes and expiration.
What is the max loss of a short guts?: Unlimited: the loss keeps growing the further the price moves against it. The calculator gives the figure for your strikes and expiration.
How do I calculate a short guts's profit and loss?: Open the short guts in the strategy calculator. It places the legs on a real expiration, and you can drag the strikes, change the date, and read profit and loss by price and date, with max profit, max loss, and the breakevens.