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Sorry my fault, it shouldn't have been the 27 Jan 2017 expiration but the 20 Jan 2017. When I changed it to 20 Jan 2017, then the calculation was correct. My mistake. I am not sure myself what trade it is, I think I am just experimenting a little with the strikes and expirations and see what...

Yes, I also try to calculate the maxrisk in the trade and keep the trade independent. I did a simple example with the same expiration month: http://www.bilddump.se/bilder/20161223215359-195.252.32.111.png When looking at the picture in TOS, there is a maxrisk of -135.70 at spotprice 30. I...

I found this image that shows how much the time decay is in periods: (The link didn't work on internet so I add it) http://www.bilddump.se/bilder/20161223002126-195.252.32.111.png Using for example as the example shows 120 days: 30 days: 5% 60 days: 10% 90 days: 15% 120 days: 70% Perheps this...

Yes ofcoure, you are right we make $40 at that point. Then the question is for the loss of $408 for strike 30 at expiration 21 APR 17. Okay so they look at the nearest expiration. If it is $-70.33 at the nearest expiration, we make a profit of $40 which means that strike 30 must make a loss...

Hello, I have set up a graph in TOS. Looking at below picture I am not sure what I am missing? http://www.bilddump.se/bilder/20161222125236-195.252.32.111.png Sell 1 contract at strike 26: 4.40 Buy 3 contracts at strike 30: 1.36 As seen I have put the cursor at 29.96 and TOS shows a maxloss...

Then I know about the commission, thanks. What you wrote above there was very interesting. I was thinking about that today also how it would work in practise on average. You mention it was three years ago you got your shares "called away". I also notice when I calculate that there is a big loss...

Yes you are right, I should say "called away". Aside for the 20 dollars, I wonder will we pay the additional commission for the 100 stocks also as we would when selling 100 shares of stock (The regular commission) ? Also will we pay the commision for the optioncontract here when the stocks are...

Thanks, I see. That is true when I think I about it that way as insurance also. 3 more questions popped up. 1. If the shares gets assigned, do I pay commission for those shares. If I would have sold the stocks traditionally, we would pay commission but do we pay commision if the shares in this...

I was thinking of, if the stockprice ends ITM and just let us assume for the sake of the example that the stock doesn't get "called away". Do I still keep the $0.50 premium, with other words no matter what I will always keep the premium?

Thanks alot for your confirmation. I will then keep this post as reference so I am sure to remember this :-)

Hello, I might have asked some simular question before but to be sure in this scenario, I wonder if the stock that I own gets assigned, - does that mean that the stock is sold from my account and I get the cash back like below example? 1. I own 100 shares of stock XYZ now trading at $20 with...

Thanks, I will ask them and see what they say.

Thanks, I wonder something. When I look at my trading account, I can see a SMA which is 10 times greater than actual money I have in the account. For example, Cash: $1000 SMA: $10000 Does this mean that I can purchase shares for $10000 on that margin? I must confirm this. Is it not possible...

Hello, I wonder how to calculate margin needed in this example: - Buy 100 shares of AAPL for $100.0 - Buy 1 PUT for $4.00 at strike 100 I beleive that if we only buy the shares, we would need this margin? 100 * $100 = $10000 I also then wonder what margin that would be required in total if...

Then I understand. I was not 100% sure of that you could only sell the option once you had it. I think that was the thing which confused me. Sorry for my confusion.. So with the above, then I think I understand. What you mention about "giving" away is the timevalue above the intrinsic value...

Thanks Sig, I am afraid that I have missed some basic. Before reflecting your good answer there, I was just reading this on google: So I must ask this basic question. One who has bought an option. Does this person have 2 choises like below? - Sell the option (which means that no shares are...

I have calculated all options prices, including, delta, IV, IV skew, gamma, vega, vomma, vanna, veta, charm, color etc using the Black Scholes model, I know how vomma, veta, vanna affects the vega, the gamma affects the delta. The IV affects one another 1% up and down. I have implemented them...

I think I have a quite good knowing about how the options are price but still learning :) I know options are "overvalued" if IV is high (historically speaking) which for example can happen before dividends. The value above the intrinsic value is the time value. If the dividend is larger than the...

Hello, I have a trade that look like this: buy 1 call contract, strike 210, price 1.99 sell 2 call contract, strike 225, price 0.57 buy 2 call contract, strike 240, price 0.19 Now I try to calculate margin requirement for this trade and have come up with 2 different calculation. As seen, I...

I am thinking from the buyer of the calls perspective. If he bought the OTM call for 0.60 dollar Strike 103 when the spotprice was at 100 and 2 days later the price of the stock is at 104 (ITM). Why wouldn't he want to assign now since the option could be worth for example almost 2 dollar now...