A trader sold 4,000 August $32 straddles at $3.45 which was tied to 100,000 shares of stock.
The trader's short straddle profits if the underlying stock doesn't make a big move before August expiration. The profitable range for the spread is between $28.55 and $35.45. The max risk is unlimited to the downside and upside. The max profit occurs at an underlying stock price of $32.
The chart above is the WYN stock chart. The two white lines are the profitable range for the straddle. The 52-week range for WYN is a low of $19.44 and a high of $35.50. WYN traded 8,981 option contracts compared to average daily volume of 1,636.
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