how do you earn a profit in a straddle 
divide the total premium cost by the strike price to determine how much an underlying security must rise or fall to earn a profit on a straddle it would be calculated as 10 divided by 100 or 10 if the total premium cost was 10 and the strike price was 100 the security must rise or fall more than 10 from the 100 strike price to make a profit 