This strategy entails shorting both puts and calls at the same strike price and expiration.  It is best place with very little time until expiration and with a low expectation of volatility.  The position has unlimited risk on both sides of the trade.  Reward is limited to the credit received.  This is a very aggressive strategy so we want to give the underlying security as little time as possible to move away from the short option strike price.  Another way to think of this trade is that it is an Iron Butterfly without the wings.  (no protective long options)

Study the rick graph and you should gain an understanding of the risk and reward of the trade.  Best Robin

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