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  • Strangle Strategy

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    Niraj Kumar
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    14 views1 page

    Strangle Strategy

    Uploaded by

    Niraj Kumar

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 1

    Long Strangle:

    Buy 1 $60 BAC Put at $2.25 (Premium)

    Buy 1 $70 BAC Call at $2.50 (Premium)

    Initial Debit (Loss): $4.75 or $475 (2.25+2.5 =4.75) (Max loss)

    Short Strangle

    Sell 1 $60 BAC Put at $2.50 (Premium)

    Sell 1 $70 BAC Call at $2.30 (Premium)

    Initial Credit (Profit): $4.80 or $480 (2.3+2.5 =4.80) (Max Profit)

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