When to use
If market is within or near A-B range and, though active, is quieting down.  If market goes into stagnation, you make money; if it continues to be active, you have a bit less risk than with a short straddle. 

Profit Characteristics
Maximum profit equals option receipts if put-call version employed.  Maximum profit realized if market, at expiration, is between A and B.

Loss Characteristics
At expiration, losses occur only if market is above B plus option receipts (for put-call) or below A less the amount.  Potential loss open-ended.  Although less risky than short straddle, position is not riskless.  It got its name during the April 1978 IBM price swing, when a number of good traders holding this position were wiped out.

Decay Characteristics
Because you are only short options, you pick up time decay at an increasing rate as expiration nears, maximized if market is within A-B range.

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