Market View
A big move up or down
Implementation:
Buy ATM Call and ATM Put option.
- Buy 1 ATM Put option (Leg 1)
- Buy 1 ATM Call option (Leg 2)
Key trigger points:
- Net Debit = Call Premium + Put Premium
- Lower Breakeven = ATM - Net Debit
- Upper Breakeven = ATM + Net Debit
- Max Profit = Unlimited (on either side)
- Max Loss = Net Dredit (at ATM)