Recent content by Victor123

Let us say I bought a 12 - 13 call spread on BB. At the time of the trade, BB was ~ 12.50. So I buy the 12 call and sell the 13 call, both to expire on Jun 19. Over the life of the option, the stock zigs and zags between 12 and 13...going as low as 12.10 and as high as 12.90 and settles at...

I cannot figure this out. I know how the PnL graph looks, but is the trade long volatility or short volatility. I am trying to figure out if it is a good trade to have, going into earnings.

Thank you. The 12 strike(delta = 63) has IV = 44, the 13 strike (delta = 44) has IV of 47. So, you are saying that because IV is more for 13 strike, it is going up more? As the underlying continues to increase, is it possible to say if the 13 call will lose more than the 12 call will gain?

With Blackberry (BB on TSX, not BBRY) at 12.30, I entered the 12 - 13 bull call spread, paying .86 for the long leg and getting .40 for the short leg. Now BB is inching up to 12.50...and it is a bit odd that the long leg is gaining less than the short leg is losing. After all, it is a bull...

Maybe I am wrong, but this is how I calculated: Initial long:152 * 22 = 3344 Initial short: 95*44 = 4180 Current long:152 * 82 = 12464 Current short:95 * 132 = 12450 Profit on long: 12464 - 3344 = 9120 Profit on short: 4180 - 12450 = -8270 Total profit:9120 - 8270 = 850

Thank you.

Please consider this scenario: Stock is at 20$. I short the 20 put (1 month to go) for 0.25 , hoping for a bullish move. Stock goes up to 20.20 quickly, so assuming a -50 delta, the put goes to 0.15. So I purchase the 19.50 put as a cheap insurance, for... let us say...0.05. SO I have a bull...

Thank you very much dolemite and sonoma

Thanks. Will it always be possible to close before expiry...considering deep ITM options can have liquidity problems?

Is there a way to extend the put call parity synthetic relationships to cover multiple strikes? For example, I always hear that a covered call is a synthetic short put. Does that statement only hold in this case: Long stock at 100, sell 100 Call = short 100 Put Or also in this case: Long stock...