Sell an out-of-the-money call and an out-of-the-money put, collecting both premiums. The stock can drift within a wide band and both options still decay to zero. Like the short straddle, the upside loss is unbounded and the downside loss very large — naked-short risk applies.
Premiums start as Black-Scholes model values — overwrite them with your broker’s real quotes for exact numbers.
| price | today | +4d | +8d | +11d | +15d | +19d | +23d | +26d | expiry |
|---|---|---|---|---|---|---|---|---|---|
| 130.0 | −2.1k | −2.1k | −2.1k | −2.1k | −2.1k | −2.1k | −2.0k | −2.0k | −2.0k |
| 125.0 | −1.6k | −1.6k | −1.6k | −1.6k | −1.6k | −1.6k | −1.5k | −1.5k | −1.5k |
| 120.0 | −1.1k | −1.1k | −1.1k | −1.1k | −1.1k | −1.1k | −1.0k | −1.0k | −1.0k |
| 115.0 | -696 | -672 | -648 | -630 | -605 | -581 | -558 | -544 | -536 |
| 110.0 | -346 | -316 | -284 | -260 | -224 | -185 | -140 | -99 | -36 |
| 105.0 | -105 | -73 | -41 | -15 | 20 | 56 | 96 | 129 | 164 |
| 100.0 | -1 | 29 | 59 | 81 | 110 | 135 | 155 | 163 | 164 |
| 95.0 | -45 | -19 | 8 | 29 | 57 | 86 | 117 | 141 | 164 |
| 90.0 | -244 | -224 | -202 | -185 | -161 | -134 | -102 | -74 | -36 |
| 85.0 | -583 | -573 | -563 | -555 | -546 | -538 | -533 | -532 | -536 |
| 80.0 | −1.0k | −1.0k | −1.0k | −1.0k | −1.0k | −1.0k | −1.0k | −1.0k | −1.0k |
| 75.0 | −1.5k | −1.5k | −1.5k | −1.5k | −1.5k | −1.5k | −1.5k | −1.5k | −1.5k |
| 70.0 | −2.0k | −2.0k | −2.0k | −2.0k | −2.0k | −2.0k | −2.0k | −2.0k | −2.0k |
Dollar P&L for the whole position. Pre-expiry cells are model values (constant IV); real marks will differ with volatility and skew.
An options position is a view on the company underneath. Our SEC-grounded verdicts, quality scores and filings coverage are free for every US-listed name.
Educational model, not trade advice. Options involve substantial risk and are not suitable for every investor — read the OCC’s Characteristics and Risks of Standardized Options. Model values use Black-Scholes with your inputs (constant volatility, European exercise, no dividends) and will differ from live market prices.
Research and education only — not financial advice. TENKis not a registered investment adviser or broker-dealer and gives no personalized advice. Every call is impersonal — identical for all users, generated on a schedule from SEC filings plus a delayed/third-party price feed — may be wrong or out of date, and is not a recommendation to buy or sell any security. The operator and an affiliated trading operation may hold or trade the securities TENK rates; see Disclosures. Past performance does not guarantee future results. Do your own research.