I'm glad to give my 2¢. A long strangle profits from fast motion in either direction. For example, the August trade would only be profitable if the stock fell below $11.16 or rose above $15.84 (plus fees) before August 16th. You also miss out on the dividend.Are you neutral on WU, or bullish? I personally don't see much chance of profiting to the downside with WU falling below $11.16. At that point classic value measures like yield (~4.5%) and P/E (~5.5!) would be very attractive.I have bought the "straight" stock for the dividend and profit to the upside. You may consider forgoing the dividend and buying just the August call, making the trade profitable above $15.05 (plus fees). I believe it likely WU will go up 7.1% in 7 months.
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