Question
Suppose XYZ stock is trading at $50 per share. An options trader enters a long straddle by buying a Sept 50 put for $250 and
Suppose XYZ stock is trading at $50 per share. An options trader enters a long straddle by buying a Sept 50 put for $250 and a Sept 50 call for $250.
- How much is the total investment the trader put into the straddle?
- Whats maximum loss the trader may have?
If the stock in September 2020 trades declines to $40, whats the profit on this trade?
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Day Trading For Beginners 7 Steps To Earning $2 000 Per Month Day Trading In Less Than 20 Hours A Week
Authors: David Princeton
1st Edition
1511541202, 978-1511541206
