Short straddle
Sell the ATM call and put together. You collect both premiums and keep them if the index sits still into expiry.
BIASNeutral
VOL VIEWFalling IV
RISKUndefined
STRUCTURENEUTRAL
STRDPAYOFF AT EXPIRY
LEGSLIVE CHAIN—
| ACTION | QTY | TYPE | STRIKE | LAST |
|---|
The purest short-volatility trade there is. Maximum profit is the whole credit, earned only at the exact strike; losses grow point-for-point beyond either breakeven, without limit. Most desks run it with hard stops or convert it into an iron condor when the credit is rich.