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!. It looks like you sold the 7.50 straddle for .90. Outside of 6.60 or 8.40 the trade loses regardless of other factors. For example, if WINN drops to 6.50, the call cannot offset the gain in the value of the put and the straddle is worth at least 1.00. 2. You have to buy the options...

The pricing is inaccurate. The 88P is not worth more than the 90P.

A funny thing happened on the road to riches:)

It doesn't matter if anyone else agrees with it, you're the one with money on the table. Personally, I wouldn't make this trade, but maybe you know something about WINN? I don't agree that it is neutral. WINN is just under 7. So the trade is bullish for now. Looks like you got about a...

Yes. Much better now. Back in the day of auto-exercise threshholds of .75? I'd often have to send in contra instructions for long options that were ITM less than the threshhold. Occasionally, back then, you'd have a short ITM that wasn't exercised. Usually a bonus, but made risk...

:) +1

lol literally. I'm looking at all the scribbles on the backs of envelopes in front of me. I don't even know what half those calcs mean anymore. :D

It is a personal question, though. To add to MTE's ample criteria, there's also risk tolerance and experience. You want a strategy that you understand, doesn't make you nervous and gives a good return. Some traders may sell puts in a bull mkt, while others prefer a more limited risk...

You're right and I feel terrible about it. I think I'll just take my 100 million and quit trading :(

My apologies for the shoot from the hip post. BTW, I recommended this thread in a PM about managing diags.

Hmmm...let me get this straight. It looks like you have a Jan. vertical put credit spread 135/137 strikes. And a Feb. vertical put debit spread 134/136 strikes - all for about even money?

To add to rew's points. The synthetic is equivalent to an SSF with some contractual differences that could lead to early assignment or pin risk. Some of the erratic return may be attributed to the discounting of the div. particularly on 11/16 ex - div. date. Other than that it is the...

That's 98.5 at April expiry. Before expiry the breakeven and profit levels may be sustantially higher because the short options may hold considerable value at those higher UL prices - depending mainly on time remaining and IV levels. Yes, you have to buy back those shorts to close before...

Where'd you get the 25 profit? IB's option valuation is sometimes off the mark. That calc is suspect. You have a four legged position. All kinds of room for error there. The risk navigator calcs should be suspect. You are better off taking calcs for the individual options and...

Agree. BTW, if it is an anomaly, then why would you want to trade it now?:D

Best trade analysis, ever.

I don't think so. But they may have an interest in making your money tight.

Not to harp on this, :D but just 18 more cents gets you a strangle.

It is not a matter of being a proponent of BSM but understanding its scope, applications and limitations. Which came first - The option price or the model? The models were designed to measure, label and help to explain the complexities of option pricing. In its theoretical snapshot...

Your premise is faulty at best. You've shown a lack of understanding of the greeks - as have many others on this thread. You just responded to the two correct answers on the thread. Think about it. Do you really wish to be enlightened? It's not that hard to get it.