Market View
A big move up or down
Implementation:
Buy a Put below spot price(OTM) and Buy a Call above the spot(OTM) price
- Buy 1 OTM Put option (Leg 1 - LS)
- Buy 1 OTM Call option (Leg 2 - HS )
Key trigger points:
- Net Debit = Call Premium + Put Premium
- Lower Breakeven = PE Strike - Net Debit
- Upper Breakeven = CE Stike + Net Debit
- Max Profit = Unlimited (on either side)
- Max Loss = Net Debit (Between LS and HS))