P/L Graphs

S

SuperMoney

hey guys,

I've been trying to find graphs showing payouts for options hedged with deltas. I know how the positions would look 1 to 1 (1 option, 1 future), but how about buying 100 put spreads and say.. 60 deltas to make it flat?

I've scoured the net and there is hardly any info on trading options from a market maker perspective. Are there any good books out there that cover this topic?

Thanks for the help
SuperMoney
 
Something like this?

I didn't use a real stock, XYZ at $50.
long 100 45/42.5 put spreads and long 64 shares of stock to make it neutral.

I believe the CBOE Option Tool Box has a net position calculator.
 

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Quote from SuperMoney:

hey guys,

I've been trying to find graphs showing payouts for options hedged with deltas. I know how the positions would look 1 to 1 (1 option, 1 future), but how about buying 100 put spreads and say.. 60 deltas to make it flat?

I've scoured the net and there is hardly any info on trading options from a market maker perspective. Are there any good books out there that cover this topic?

Thanks for the help
SuperMoney
More...

My broker is Thinkorswim and it is part of the software.
 
Thanks for the book recommendation, I've been looking for something like it.

And as the other person stated, TOS has the capabilities built into the client to perform this.
 
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