Guts is the purchase or the sale of two in-the-money options. For example, a long guts consists of the purchase of a low strike call and the purchase of a high strike put. A short guts position consists of the sale of the high strike put and the sale of the low strike call.
Barry Goldsmith
| APA | Barry Goldsmith. (2010). guts. Retrieved September 21, 2026, from http://smartdefine.org/guts/definitions/1155258 |
| Chicago | Barry Goldsmith. 2010. "guts" http://smartdefine.org/guts/definitions/1155258 (accessed September 21, 2026). |
| Harvard | Barry Goldsmith 2010, guts, Smart Define, viewed 21 September, 2026, <http://smartdefine.org/guts/definitions/1155258>. |
| MLA | Barry Goldsmith. "guts" 21 October 2010. Web. 21 September 2026. <http://smartdefine.org/guts/definitions/1155258> |