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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 sure which direction. So you buy a long strangle position, with a call and put option, worth $10 and $3 per share, respectively, three months to expiration, and strike prices of 910 (call) and 890 (put). If at expiration AMZN is trading at $865, what is your net profit per share

asked
User Gcarmiol
by
7.4k points

1 Answer

5 votes
the net profit per share would be 600
answered
User Schickling
by
9.0k points
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