Am I calculating this rollout correctly?

W

wxytrader

upload_2024-9-14_7-27-46.png



If on SEP19, BITO is trading @19.50, and I roll out the SEP20 spread to SEP27:

I entered the SEP20 spread for a debit of .08
I would be closing SEP20 spread for credit of .495 (.583-.089)

I would be opening a new SEP27 spread for a debit of .48 (1.012-.532)

So the cost to roll is going to be .495-.48=.0145 credit?

I essentially just closed my position for a $414.56 profit, and then opened a new position that cost .0145 less.
 
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zdreg said:
No wonder the US ranks far from the top in math competency.
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Lol I'm in Canada...so where is it wrong??? Rolling is just a fancy way to say closing one position and opening another. Also, can't roll with my banks broker platform ...would have to phone it in for a fee.

Is nobody going tho mention how awesome my sheet is to be able to calculate future date and prices? :)
 
zdreg said:
No wonder the US ranks far from the top in math competency.
More...

Where is the math wrong? If you make a comment like that then at least back it up! :)

wxytrader said:
I essentially just closed my position for a $414.56 profit, and then opened a new position that cost .0145 less.
More...

This statement might be confusing you so let me clarify.

Closed a position for $495
Open a position for $480
Results is a $14.50 credit
(.0145 credit x 100 x 100 =$14.50)

So my sheet IS correct.
upload_2024-9-15_4-10-44.png
 
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wxytrader said:
View attachment 349071


If on SEP19, BITO is trading @19.50, and I roll out the SEP20 spread to SEP27:

I entered the SEP20 spread for a debit of .08
I would be closing SEP20 spread for credit of .495 (.583-.089)

I would be opening a new SEP27 spread for a debit of .48 (1.012-.532)

So the cost to roll is going to be .495-.48=.0145 credit?

I essentially just closed my position for a $414.56 profit, and then opened a new position that cost .0145 less.
More...
Just curious, did you try to ask this question chatgpt?
 
Your calculations are not logical. There is no connection between closing your current position and opening a new position which could be anything.
If you made $481 from your initial trades that is the end of the story. If you roll the $481 into another option position with a maximum loss e.g. $501 it is just a new trade and has no connection to the previous trades.
 
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zdreg said:
Your calculations are not logical. There is no connection between closing your current position and opening a new position which could be anything.
If you made $481 from your initial trades that is the end of the story. If you roll the $481 into another option position with a maximum loss e.g. $501 it is just a new trade and has no connection to the previous trades.
More...

Yes chat gpt got it right. Well everything is connected. :)
 
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