Fwd: FXE : December 2011 Option Table

Subject: FXE : Option Table

Thinking out loud for discussion

Option Table for FXE Dec 2011 :
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To buy a put strike $139 cost.  $4.15
To buy a call strike $145 cost   $3.50
                                               --------
Total cost of Straddle :             $7.65


Terrible case scenario : All gone....haha
Worst case scenario lose half : $3.80

To make money Put has to go below $134 & Call has to go above $149.
Basically the break-even price for the Straddle.

Say to make 50% out of the whole thing price has to move $3.80 beyond BEP.
Which are $131 or $153 respectively .....possible ??


To be creative is to sell the $129 Put and collect $1.69 & sell $155 call for $0.63
For a total of $2.22

Offset that against $7.65 cost of the straddle to get a net cost of $5.43.....