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You think the price of AMZN stock, which is currently $900 is likely to change significantly over the next three months, you are just not
You think the price of AMZN stock, which is currently $900 is likely to change significantly over the next three months, you are just not sure which direction. So you buy a long straddle position, with a call and put option, worth $25 and $24 per share, respectively, three months to expiration, and a strike price of $900.
If at expiration AMZN is trading at $966, what is your net profit on this position?
Remember that option contracts come in multiples of 100 shares.
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