Payoff Diagram at Expiration
Total P&L
Call P&L
Put P&L
Current
Strikes
P&L Analysis
Total Cost:
-$4.50
Max Loss:
-$4.50
Max Profit:
Unlimited
Breakeven Points:
Lower: $65.50
Upper: $84.50
Profit Range:
WTI < $65.50 or WTI > $84.50
High Volatility Expected
Profits from large moves in either direction
Best Case: Major geopolitical events, supply disruptions, or significant demand changes
Worst Case: Oil price remains stable between put and call strikes
Current Setup:
WTI at $75 with strikes at $70/$80
✓ Proper OTM Straddle
Worst Case: Oil price remains stable between put and call strikes
Current Setup:
WTI at $75 with strikes at $70/$80
✓ Proper OTM Straddle
Input Parameters
Strategy Overview:
• Long call option above current price
• Long put option below current price
• Profits from large moves in either direction
• Limited risk, unlimited reward potential
• Best for high volatility expectations
• Long put option below current price
• Profits from large moves in either direction
• Limited risk, unlimited reward potential
• Best for high volatility expectations