Question: Elijah believes that the SP500 will be relatively stable over the next month. The current spot is 3930 . He sells a strangle : s

Elijah believes that the SP500 will be relatively stable over the next month. The current spot is 3930. He sells a strangle: selling a put with a strike of 3710 and selling a call with a strike 4030. The quotes are 10 dollars for each of them. Thus the premium is quoted as 20 in aggregate. Each SP500 options contract is priced 100xIndex.

On a per contract basis, what are the break-evens, best cases and worst cases, and when do the worst and best cases occur?

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