roptions (version 1.0.3)

straddle.long: Long Straddle Strategy Function

Description

This function can be used to develop a Long Straddle Strategy.

Usage

straddle.long(c, p, k, ulimit = 10, llimit = 10)

Arguments

c

Premium of Long call Option

p

Premium of Long Put Option

k

Excercise Price of Long call and Put Option

ulimit

Upper Limit of Stock Price at Expiration, Default: 20

llimit

Lower limit of stock price at Expiration., Default: 20

Value

OUTPUT_DESCRIPTION Returns the profit/loss generated from the strategy along with the profit/loss of individual contract and an interactive graph for the same.

Details

A straddle is a neutral options strategy that involves simultaneously buying both a put option and a call option for the underlying security with the same strike price and the same expiration date.

Examples

# NOT RUN {
straddle.long(1.2, 3.2, 100)
# }