To make some extra cash you decide to enter a short, Financial Management

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To make some extra cash you decide to enter a short

You think the price of WMT, currently trading at $68, is not going to change very much in the next 3 months. To make some extra cash, you decide to enter a short strangle position, selling a 3 month $75 call for $0.31 premium, and a 3 month $57.50 put for $0.33 premium. If at expiration the price of WMT shares is $73 per share, what is your net profit on this position?

Remember that each option contract is on 100 shares.

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Financial Management: To make some extra cash you decide to enter a short

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Financial Management: To make some extra cash you decide to enter a short

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