Volatility — Strategy calculators

A long straddle buys a call and a put at the same strike to profit from a large move in either direction — often used around earnings or major events.

A long strangle buys an out-of-the-money call and put. Cheaper than a straddle but needs a bigger move to pay off — a low-cost bet on volatility.

A strap is a straddle tilted bullish: two long calls and one long put at the same strike. It profits from a large move in either direction, but earns more if the stock rises than if it falls.

A strip is a straddle tilted bearish: one long call and two long puts at the same strike. It profits from a large move in either direction, but earns more if the stock falls than if it rises.

Twin Peaks is an original, experimental structure — two butterflies at once: a put butterfly below the current price and a call butterfly above it. The payoff has two peaks, so it profits from a moderate move in either direction while keeping the risk defined and small.

A reverse iron condor is the iron condor flipped: you buy the inner call and put spreads and sell the outer wings, paying a net debit. It profits from a big move in either direction, with both the maximum profit and the maximum loss strictly defined — a defined-risk long-volatility trade.

A reverse iron butterfly (long iron butterfly) buys the at-the-money call and put and sells an out-of-the-money call and put as wings. It is a defined-risk, long-volatility trade: you pay a net debit and profit if the stock makes a decent move in either direction, with both the maximum profit and loss capped.

Long guts buys an in-the-money call and an in-the-money put — a strangle built from ITM options. Like a straddle, it profits from a big move in either direction, but both legs carry intrinsic value, so the position is more expensive and a guaranteed slice of value sits between the strikes.