Not really a directional or volatility trade at all — combine a Bull Call Spread and Bear Put Spread at identical strikes to lock in a fixed, guaranteed payout, functioning like a synthetic loan.
Box Spread is a sideways / range-bound options trading strategy (4 legs) engineered for zero (theoretical arbitrage) risk profiles in irrelevant market environments.
Spread Width - Net Cost
Net Cost - Spread Width
N/A (Fixed payout at expiration equal to spread width)
| Action | Contract Type | Strike Selection | Quantity |
|---|---|---|---|
| BUY | CALL | Lower Strike | 1x |
| SELL | CALL | Upper Strike | 1x |
| BUY | PUT | Upper Strike | 1x |
| SELL | PUT | Lower Strike | 1x |
The bread-and-butter income trade for a range-bound market. Stack a Bear Call Spread on top of a Bull Put Spread, collect the combined credit, and let the stock chop sideways while theta pays you.
🔁 Sideways / Range-BoundThe condor's tighter, higher-conviction cousin. Sell an ATM call and ATM put right at the money, buy OTM wings for protection. Bigger credit, but the stock needs to stay much closer to your center strike.
🔁 Sideways / Range-BoundAs pure as premium-selling gets — sell an ATM call and an ATM put, same strike, same expiry. Maximum premium collected, but maximum exposure too if the stock decides to move hard in either direction.
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