2. Using the QQQ (see email and post under Exams), design a short strangle. The short put strike should be approximately 15% under the stock price and the call should be approximately 15% above the stock price. Using the delta, gamma, and theta and assuming you hold the position to expiration (98 days), and assume that the stock at expiration is unchanged,
   1. Provide the annualized return.
   2. Describe how you could increase the annualized return on a short strangle.
   3. What happens if the stock falls 20% after 5 days?
   4. Provide an appropriate exit or repair strategy? At what point should you close out one leg of the position? Would you then rewrite that leg?

Price=$285.71, Strike=243, Call=328.57, Put bid=5.84 (Delta=-0.1767, Gamma=0.0046, Theta=-0.0747, Vega=0.3790, Rho=0.1433)