"How to Trade a Long Guts in Singapore ?"

Options Trading Singapore
12-19 07:34

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.

🚀 Learn Advanced Options Trading FREE Now !

Options 101: How to Roll Positions and Avoid Big Losses?
In options trading, rolling is an essential tool for risk management and strategic adjustment. Simply put, rolling involves closing an existing options position and simultaneously opening a new one—typically to modify the expiration date, the strike price, or both. This tactic is often used as an active position management strategy to adapt to market changes or to control risk. Have you ever used rolling in your trading? What other options knowledge would you like to share with fellow investors?
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

  • LeilaLynch
    12-19 14:30
    LeilaLynch
    B) Expensive but responsive for sure! SG markets need that edge. 🔥
  • Porter Harry
    12-19 14:25
    Porter Harry
    Thanks for sharing!
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