In the lecture, we constructed a long straddle on AAPL as follows:

• one long call with strike $170 at a premium of $8.94
• one long put with strike $170 at a premium of $10.52

Constructing the payoff table as instructed in Lecture 7, you can see that the breakeven points for this long straddle are $19.46 either side of $170 (that is, $150.54 and $189.46).

A long straddle is "neutral" to the direction of AAPL price movements. The slope of the payoff diagram is the same in the positive and negative directions.

In contrast, a long strap is also an option-trading strategy that profits from a big price movement in either direction, but the profits are larger for up movements.

To see this, apply the calculations of the payoff table as instructed in Lecture 7 on the following long strip:

• two long calls with strike $170, each with a premium of $8.94
• one long put  with strike $170 at a premium of $10.52

 what are the breakeven points for this long strap? That is, at what share price does the long strap have a zero net profit?