The short straddle is an unlimited risk options strategy that assumes that the underlying will remain in a particular range for the duration of the trade and consists of a short call and a short put at the same strike price. It can be skewed directionally or advance a neutral bias, and maximum profit is realized if the price of the underlying remains within the range for the duration of the trade.
EXAMPLE: AAPL Sep 4 123 Short Straddle.
Max Profit: $586
Max Loss: Unlimited