A stock has been trading in a narrow price range of $100 for the last month, and you think the price will break far out of that range in the next two months in either direction. Given the price of a 2-month call option at an exercise price of $100 is $10 and a 2-month put option is $7 with $100 exercise price,

1. What would be a simple options strategy to exploit your belief about the stock price future movements?

2. How far would the stock price have to move for you to make a profit?