The investor takes both long and short positions on the same underlying with the same strike price and expiration date. For the implementation of this strategy, I selected the shares of SunEdison Inc., the company is restructuring its operations and renewing its business strategies. These measures, if proven effective in increasing revenues, would push up the price of the company and vice versa. The strike price for both call and put options is $8. For both of these options, only the contract has been selected. The total cost of the straddle is $103($12+$91), which also represents the maximum loss expected by the strategy. The maximum profit in case of price increase is infinite and the maximum loss in case of price decrease. The maximum loss is equal to the strike price of the put option minus the total cost of the premium which in this case is equal to $697 [($8-1.03)*100]. There are two breakeven prices in the case of a straddle and both are calculated by adding and subtracting the total cost from the strike price. In the case of SunEdison Corp, the break-even prices are 9.03 and 7.97 as shown in the diagram