Search results

Strike price: 25 Stock price 25.75 .75 above the strike or 3/4 of a point.

Your question is somewhat confusing. First you state a "Bull Call Spread" which would be a debit spread. Then you have: break even = put sold - net credit Examples for Break Even for Credit and Debit Spreads both put and calls is this: These examples are on RIG Sept. Options. All...

Quote from the web page: "It me a long time to remember that a put option is the right to sell the stock at the strike price, and a call option is the right to buy the stock at the strike price." "a long time" duh. Sounds like someone I'd like to learn from. not...

sounds like a rip-off to me. Why should a customer be penalized for reducing liquidity???

The option Greeks are based on a theoretical model. "Theoretical" being the key word. The calculated delta is seldom the true delta so thus the Gamma is distorted. The IV is hardly ever the HV and fluctuates dramatically, thus the Vega seems worthless. Who can tell if the Theta is correct...

I was hoping to get more feedback on my delta analysis doc.

I have seen it both ways as well on the IC and the Iron Butterfly I look at it this way: Shorts result in credits... Longs result in debits....

No you are wrong. The long Condor is a combonation of a Call debit spread and a Put Debit spread. If the stock remains at 50 all options expire worthless and you lose the net debit. On the short condor, a combination of a credit Call spread and credit Put spread if all options expire...

The short Iron condor would be best if all option expire wortless. The long Iron condor would be best if one side is fully ITM and should be closed out. NOTHING wierd about that!

Here is the atached.

No. For one the Short IC is more a neutral strategy. The Long IC expect volatility. One is for a credit and one for debit. the break even points my be the same but the capital requirements, maximum profit, and % return are not. See atached.

There is the Short Iron Condor & The Long Iron Condor Plus: Long Condor Call Spread Short Condor Call Spread Long Condor Put Spread Short Condor Put Spread. All have there time and place based on ones expectations for the underlying, risk & reward.

Daily option price move vs. underlying.

Thought I'd add my delta analysis to this thread. I deliberately left out any text from the document in order to let the reader draw their own conclusions and to promote comments.

Here is a screen shot of the program I use for making all the calculations.

Download the CBOE margin manual @ www.cboe.com/tradtool/marginmanual2000.pdf

So how is it when I calculate: 7,812 * 100 * ($1.45 + 1.35) = Net Credit I get $ 2,187,360

Delt analysis coming soon. I have been doing a very detailed delta analysis since May 14th on the July strikes. Will post the results (pdf) after expiration.

The selection of Strike Price in relation to the underlying is a matter of Risk vs. Reward. The probability that a ITM Call will expire worthless is less than that for the OTM Call. The OTM offers both larger potential risk and larger potential reward. Your tolerance for risk and your...

Uncoverd options must be in a margin accout. The rules of the exchange require that a margin account have a minimum of $2000