Straddle Boeing Aircraft is currently trading at $245

Call premium            Strike          Put Premium

$26.10                          235               $12.22

$20.32                          245                $17.30

$15.11                         255                $26.26

An options trader expects a price movement in Boeing Stock but is unsure about the direction. The trader decides to implement an options straddle strategy on Boeing. 4 points each Using the data above, create a Straddle on Boeing Stock. Stock Option are traded in 100 stock increments.

a. What is the upper breakeven?

b. What is the lower breakeven?

c. What is the profit if Boeing Stock moves to 205?

d. What is the profit if Boeing moves to $265?

Answer rating: 100% (QA)

a Upper Breakeven Calculate the upper breakeven by adding the total premium paid to the strike price ... View the full answer