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Betting that the upcoming earnings announcement - the price of the stock will not move by more than $10 dollars. Constructprofitdiagrams at expiration time to
Betting that the upcoming earnings announcement - the price of the stock will not move by more than $10 dollars.
Constructprofitdiagrams at expiration time to show what position in puts, calls and/or underlying stock best expresses the investor's objectives described below.
The stock sells for $150 so that profit diagrams between $100 and $200 in $10 increments. At-the-money puts and calls currently cost $20 each. The call with strike $140 costs $25 and the call with strike $160 costs $17.
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