STRATEGY: EXAMPLE: Long Stock + Short Straddle Buy Stock @ 50 and Sell $50 Call @ 3 and Sell $50 Put @ 2 LONG STOCK + SHORT STRADDLE P/(L) Stock Price at Expiration Long Stock Short Call Short Put P/L) P/(L) P/(L) Total P (L) Stock 45 50 55 Price STRATEGY: EXAMPLE: Long Stock + Short Strangle Buy Stock @ 52 and Sell 1 55 Call @ 1 and Sell 1 S50 Put @ 1 LONG STOCK + SHORT STRANGLE Stock Price at Expiration Long Stock Short Call Short Put P/(L) P/L) P/(L) Total P/(L) Stock Price 50 55 60