Assertion: straddle's loss | /r/HasProperty | equal
Facets:
value: to the initial net premium
type: OTHER
value: to the initial debit
type: OTHER
Source sentences:
text: Your maximum loss is equal to the net premium paid for the two positions.
text: On expiration in July, if XYZ stock is still trading at $40, both the JUL 40 put and the JUL 40 call expire worthless and the long straddle trader suffers a maximum loss which is equal to the initial debit of $400 taken to enter the trade.
text: The options trader will typically sell the long term straddle to buy back the near term straddle and thus the maximum loss is equal to the initial debit taken to enter the trade.
text: Hence, the long call synthetic straddle trader suffers a maximum loss which is equal to the initial net premium paid of $400 taken to enter the trade.
text: If this should occur, the trader will realize the maximum potential loss -- which is equal to the initial investment of $136.
text: Hence, the long put synthetic straddle suffers a maximum loss which is equal to the initial net premium paid of $400 taken to enter the trade.