Neutral2 legsdebitneutral

Buy an out-of-the-money call and put. A straddle's cheaper cousin — less to pay, and a wider move required before it pays anything.

The same idea as a straddle, built with out-of-the-money options. Cheaper to establish, because both legs start with no intrinsic value.

The saving is paid for in distance. The stock must travel past a strike AND cover the debit, so the move required is larger than a straddle's.

Sold rather than bought, a short strangle is the uncapped version of an iron condor — the same range bet without the wings, and with unlimited risk above. The builder's template is the long version.

Priced off the guide's shared chain, on a $50 stock. Every figure beneath the diagram is computed from these legs by the same engine the Strategy Builder uses.

A flat-bottomed valley. Anywhere between the strikes, both options expire worthless and the whole debit is lost — a range of worst outcomes rather than a single point.

Two break-evens, further from the current price than a straddle's, at the call strike plus the debit and the put strike minus it.

Profit unbounded in both directions once those levels are cleared.

It suits the same movement-without-direction expectation as a straddle, when the expected move is large enough to clear the wider break-evens and the lower cost is worth that requirement.

Strike selection is the real decision: further out is cheaper and needs more movement. That trade-off is the whole structure.

The short version, as the uncapped iron condor, is where most of the risk in undisciplined premium selling has historically come from. The wings on a condor cost real credit and are what make the position bounded.

Like everything in this guide, these are descriptions of structures and conditions — context for your own decisions, not instructions to trade.