Options Question: Herbalife

ashantt · Jul 29, 2014

Why did one of these Puts on $HLF was profitable while the other wasn't?

Thanks.

convexx · Jul 29, 2014

Because they didn't trade. Stop paper-trading. You will go blind.

ashantt · Jul 29, 2014

convexx said:
Because they didn't trade. Stop paper-trading. You will go blind.

regardless, please explain why one put would be profitable and the other not?

trickyname · Jul 30, 2014

Draw a payoff diagram for each option, assuming HLF is trading around 60 like it is in your picture. You will find the answer.