Short Straddle Combination
Short straddle
combination - Writers think there will be little or no volatility.
For Example if you write 10 XYZ May 50 call options, and write 10 XYZ May 50 put options
The maximum gain is the combined premium.
Maximum loss for call is unlimited, maximum loss for put is the strike less the combined premium.
The break-even point is the strike plus or minus the combined premium.
