Options Jive - March 10, 2021 - Long Strangle Breakeven
Buying options is probabilistically similar to playing the lottery: the potential payout may be huge in the event that a long position is profitable, but the probability of this occurring is quite low.Consequently, the long-run expected value of long option strategies is typically negative.How large would profits have to be for long option strategies to break even?Join Tom and Tony as they discuss the profits required for a long strangle to break even.