Short strangle options trading strategy consists of writing a call and a put option at different exercise
Fantastic news! We've Found the answer you've been seeking!
Question:
- Short strangle options trading strategy consists of writing a call and a put option at different exercise prices. Construct a profit/loss diagram for this option strategy given the following information:
- Put option with a strike price X1= $25 and a premium of $1.5
- Call option with a strike price of X2=$32 and a premium of $2
- What's your profit or loss if the stock price is S=$31?
- Is the upside limited or not? Is the downside limited or not?
Related Book For
Posted Date: