The strategy will make money if ether settles well beyond the $800-$3,000 range on Oct. 28, making the call or put more valuable than the initial per contract cost of $62.98. That figure is reached by adding the premium paid for one call option contract, $40.52 and one put option contract, $22.46. The total premium paid for buying the 4,000 call and put contracts is $251,920. The calculation is based on figures mentioned in the above chart.
Source: https://www.coindesk.com/markets/2022/08/26/large-ether-traders-position-for-volatility-spike-as-merge-draws-near/?utm_medium=referral&utm_source=rss&utm_campaign=headlines