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  • Long Straddle Your Turn Worksheet Exercise

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    monk trader
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    The document discusses putting on a long straddle combination for Oracle Corporation stock. It shows buying a May 45 call for $1.31 and a May 45 put for $1.54. The maximum gain is unlimited while the maximum loss is the sum of the call and put premiums multiplied by 100 shares. The breakeven prices up and down are calculated using the strike prices and premiums paid. The worksheet then prompts the user to calculate these values and input an expiry price to determine profit or loss.

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    The document discusses putting on a long straddle combination for Oracle Corporation stock. It shows buying a May 45 call for $1.31 and a May 45 put for $1.54. The maximum gain is unlimited while the maximum loss is the sum of the call and put premiums multiplied by 100 shares. The breakeven prices up and down are calculated using the strike prices and premiums paid. The worksheet then prompts the user to calculate these values and input an expiry price to determine profit or loss.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
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    16 views2 pages

    Long Straddle Your Turn Worksheet Exercise

    Uploaded by

    monk trader
    The document discusses putting on a long straddle combination for Oracle Corporation stock. It shows buying a May 45 call for $1.31 and a May 45 put for $1.54. The maximum gain is unlimited while the maximum loss is the sum of the call and put premiums multiplied by 100 shares. The breakeven prices up and down are calculated using the strike prices and premiums paid. The worksheet then prompts the user to calculate these values and input an expiry price to determine profit or loss.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
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    of 2

    Worksheet:

    Your Turn
    Section 5: Long Straddle Combination 

    Oracle Corporation (ORCL) is trading at the bottom of its


    52 week range. The stock clearly oscillates in a range and
    you feel that the shares could be setting up for a decent
    sized move either up or down. You feel the next month
    long straddle is priced for opportunity, so you put on the
    structure.
    Long Straddle Combination
    Stock: ORCL
    Date: 4/6/18
    Stock Price: 44.83

    B u y 1 O RC L M AY 4 5 C a l l f o r 1 . 3 1
    B u y 1 O RC L M AY 4 5 P u t f o r 1 . 5 4

    Max Gain Unlimited


    Fo r m u l a s

    Max Loss (Call Premium + Put Premium) X 100

    Breakeven (Up) Call Strike + Call Premium + Put


    Premium

    Breakeven (Down) Put Strike - Call Premium - Put


    Premium
    Calculate the Formulas

    Max Loss

    Max Gain

    Breakeven (Up)

    Breakeven ( Down)

    ORCL Price
    at Expiry

    Net Result

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