If you expect a big market move but want a cleaner structure than a straddle, the Long Guts is one of the most overlooked strategies in options trading. This structure lets you profit from a strong move up OR down, while using deep in-the-money options — perfect for high-income traders in Singapore who want decisive volatility exposure without guessing direction.
Quick question for you 👇 What if the market explodes… but not immediately?
What Is a Long Guts?
You combine:
1️⃣ Buy an In-The-Money Call 2️⃣ Buy an In-The-Money Put
Same expiration. Different strikes. Both ITM.
This creates a volatility trade similar to a straddle — but with less sensitivity to time decay.
Why Traders Use It
✔️ Profits in either direction ✔️ Less time decay than straddles ✔️ Strong delta exposure ✔️ Works well when movement is expected later ✔️ Uses ~$1,000 per trade with proper sizing
This is the “strong conviction volatility play” used by traders who expect a real move — not noise.
Real ~$1,000 Example (AAPL)
AAPL is trading at $200.
A trader might:
1️⃣ Buy the 180 Call 2️⃣ Buy the 220 Put
Both are in-the-money.
The cost is higher per option, but the structure reacts faster once the stock starts moving.
If AAPL breaks out or breaks down hard — one side quickly dominates.
How You Profit
1️⃣ AAPL rallies strongly
The ITM call accelerates rapidly. ✔️ You profit from strong upside movement.
2️⃣ AAPL collapses sharply
The ITM put gains value quickly. ✔️ You profit from the breakdown.
3️⃣ AAPL stays flat
Time decay still hurts, but slower than a straddle. ✔️ Loss is controlled by sizing and timing.
This is why Long Guts are used when movement is expected — just not immediately.
Why Singapore Professionals Use This Strategy
✔️ Cleaner exposure than straddles ✔️ Less theta pressure ✔️ Strong directional reaction ✔️ Works well with ~$1,000 controlled sizing ✔️ Commonly used by experienced volatility traders
My Honest Take
Long Guts aren’t popular because they feel expensive.
But professionals understand something most traders don’t: structure matters more than price.
When conviction is high and patience is needed, this strategy quietly outperforms.
Let me ask you 👇
Do you prefer volatility trades that are: A) Cheap but fragile B) Expensive but responsive
Comment A or B — I want to see how you think.
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