Option Strategy TXU Buy Straddle

Option	Buy Open	1	TXUDW.OPA	TXU APR 2006 47.5000 CALL	1.25	25.00	-150.00
Option	Buy Open	1	TXUPW.OPA	TXU APR 2006 47.5000 PUT	1.70	25.00	-195.00

This is called a Buy Straddle, I have done it on TXU, whose current price is 46.9
Also see attached spread sheet to understand my strategy, there are two sheets u need to look at, first one is to identify the ideal prices for the two options, (u will see that the market prices are slightly away from wat the prices shud be if priced by Black Scholes)
The next sheet shows, at what prices of TXU will u see profit.

U could close the positions induvidually or together or wait for expiry

Below are the Profit/Loss potential for the various end of month TXU positions, but i would close much before expiry, with higher profits using selective option closing strategy.

TXU	Call	Put	Total Val	P/L
40	0	7.5	7.5	4.55
41	0	6.5	6.5	3.55
42	0	5.5	5.5	2.55
43	0	4.5	4.5	1.55
44	0	3.5	3.5	0.55
45	0	2.5	2.5	-0.45
46	0	1.5	1.5	-1.45
47	0	0.5	0.5	-2.45
48	0.5	0	0.5	-2.45
49	1.5	0	1.5	-1.45
50	2.5	0	2.5	-0.45
51	3.5	0	3.5	0.55
52	4.5	0	4.5	1.55
53	5.5	0	5.5	2.55
54	6.5	0	6.5	3.55
55	7.5	0	7.5	4.55
56	8.5	0	8.5	5.55
57	9.5	0	9.5	6.55
58	10.5	0	10.5	7.55
59	11.5	0	11.5	8.55
60	12.5	0	12.5	9.55