A trader is interested in speculating on the price of an asset by trading in options. This trader believes that the price of the asset is going to be volatile and will deviate considerably from its current price, S0.
Task: Design a strategy constructed with options for the trader. Provide as much information about this trading strategy as possible. This should be a combination strategy, i.e., using call and put options.（There are many different strategies that can be considered. From basic plain vanilla strategies, such as a short call or put, or long call or put. Good answers will need to show what type of profit or loss it possible from the strategy. And it would be good to see the answers show different scenarios, i.e., if different notional amounts can be used for the strategy, and what implications this has on the risk/reward profile. More advanced strategies may be preferable in the answer, such as spreads, or strangle/straddle/butterfly strategies. But the explanation must still be thorough for a good mark.）