From Options Insider:
A sold strangle established on the China-based manufacturer of integrated solar-power products today suggests one investor expects TSL-shares to remain range-bound through March expiration. Trina’s shares increased 1.75% during the session to $22.94.
The strangle seller shed 8,000 put options at the March $20.5 strike for a premium of $0.55 each in combination with the sale of 8,000 calls at the higher March $24.5 strike for $0.35 apiece. The trader pockets a gross premium of $0.90 per contract, which he keeps as long as shares of the underlying stock trade within the $20.50 to $24.50 range through expiration day.
The short position acquired in both calls and puts exposes the investor to losses should shares trade above the upper breakeven price of $25.40, or if shares fall below the lower breakeven point at $19.60, ahead of March expiration. The nature of short strangles indicates the trader anticipates decreased volatility in the price of the underlying stock in the next few weeks. Options implied volatility on TSL is currently down 5.40% to 60.35%.