OPTION TRADING STRATEGY FORMULAS - 5

S

sunandaC

Sunanda K. Chavan
SHORT STRANGLE

OTM Put Strike Price – (OTM Call Price + OTM Put Price) = Low Break-even Point

OTM Call Strike Price + (OTM Call Price + OTM Put Price) = High Break-even Point

LONG BUTTERFLY

Buy One + Sell Two + Buy One = Total Debit

SHORT BUTTERFLY

Sell One + Buy Two + Sell One = Total Credit
 
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