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  • Long Strangle

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    meetwithsanjay
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    This document shows a chart and tables summarizing the profit and loss of a long strangle options trading strategy. The long strangle involves simultaneously buying an out of the money call and an out of the money put on the same underlying asset. The tables show the profit and loss outcomes for different price movements of the underlying asset between the call and put strike prices purchased. The net profit of the overall strategy is positive if the underlying asset closes between the long call and put strikes at expiration.

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    This document shows a chart and tables summarizing the profit and loss of a long strangle options trading strategy. The long strangle involves simultaneously buying an out of the money call and an out of the money put on the same underlying asset. The tables show the profit and loss outcomes for different price movements of the underlying asset between the call and put strike prices purchased. The net profit of the overall strategy is positive if the underlying asset closes between the long call and put strikes at expiration.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as XLS, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    3 views2 pages

    Long Strangle

    Uploaded by

    meetwithsanjay
    This document shows a chart and tables summarizing the profit and loss of a long strangle options trading strategy. The long strangle involves simultaneously buying an out of the money call and an out of the money put on the same underlying asset. The tables show the profit and loss outcomes for different price movements of the underlying asset between the call and put strike prices purchased. The net profit of the overall strategy is positive if the underlying asset closes between the long call and put strikes at expiration.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as XLS, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 2

    LONG STRANGLE

    30

    20

    10

    0
    470 480 493 500 520 540 560 580 587 600 6
    -10

    -20

    -30

    NET PROFIT

    LOT 1 SPOT 560 LOT 1 SPOT


    PREMIUM -15 PREMIUM
    CALL BUY Break even 575 PUT BUY

    STRIKE Profit&Loss STRIKE


    470 0 -15 -15 470 50
    480 0 -15 -15 480 40
    493 0 -15 -15 493 27
    500 0 -15 -15 500 20
    520 0 -15 -15 520 0
    540 0 -15 -15 540 0
    560 0 -15 -15 560 0
    580 20 -15 5 580 0
    587 27 -15 12 587 0
    600 40 -15 25 600 0
    610 50 -15 35 610 0
    580 587 600 610

    520
    -12
    532

    PROFIT PAY OFFNET PROFIT


    -12 38 50 23
    -12 28 40 13
    -12 15 27 0
    -12 8 20 -7
    -12 -12 0 -27
    -12 -12 0 -27
    -12 -12 0 -27
    -12 -12 20 -7
    -12 -12 27 0
    -12 -12 40 13
    -12 -12 50 23

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