A trader sells a strangle by selling a call option with a strike price
A trader sells a strangle by selling a call option with a strike price of $50 for $3 and selling a put option with a strike price of $40 for $4.

a) Draw a chart showing the profits from the two options and from the strategy as a whole.
b) In what price range will the trader make a profit?

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A trader sells a strangle by selling a call option with a strike price
A trader sells a strangle by selling a call option with a strike price of $50 for $3 and selling a put option with a strike price of $40 for $4.

a) Draw a chart showing the profits from the two options and from the strategy as a whole.
b) In what price range will the trader make a profit?

Leave a Reply

Your email address will not be published. Required fields are marked *