• one long call with strike $170 at a premium of $8.94
• one long put with strike $170 at a premium of $10.52

Enter those details into PayoffDiagrams.xlsx. You should see the familiar shape of the payoff diagram to a long straddle.

Looking down column C in the spreadsheet, you can see that the breakeven points for this long straddle are $19.46 either side of $170 (that is, $150.54 and $189.46).

A long straddle is "neutral" to the direction of AAPL price movements. The slope of the payoff diagram is the same in the positive and negative directions.

In contrast, a long strap is also an option-trading strategy that profits from a big price movement in either direction, but the profits are larger for up movements.

To see this, use PayoffDiagrams.xlsx to construct the payoff diagram to the following long strap:

• two long calls with strike $170, each with a premium of $8.94
• one long put with strike $170 at a premium of $10.52

Looking down column C, what are the breakeven points for this long strap? That is, at what share price does the long strap have a zero net profit?

a: 141.60 and 184.20

b: 150.54 and 189.46

c: 141.60 and 198.40