You are an option trader for the Tiger Fund. You are pretty confident that the...
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You are an option trader for the Tiger Fund. You are pretty confident that the volatility of Solaredge Technologies Inc. (SEDG) is going to be low in the next 30 days. Therefore, you create the following option strategy: (1) sell a put option with strike 40 and premium $5; (2) buy a put option with strike 20 and premium $2; (3) sell a call option with strike 110 and premium $6; (4) buy a call option with strike 130 and premium $4. What is your net profit if the price of the underlying is 80 at expiration?
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