So I don't use stops and I think the math supports this.

[wxytrader]

You make $68 profit per contract.
Btw, above you have a typo: I guess you mean "Sep 2024"


Dunno what else you mean or expect. Elaborate pls.

Btw, you better should enter (change) also the "Current Stock Price", and better set the risk-freerate to 0, IMO. Then the Volatilities will be "corrected" by the program...

Real time market fill prices...

and some basic math

Yes Sep 2024. Ok so the P/L is showing as -$65.98 until expiration where it becomes +68 but the cost was $32?

Also it is showing P/L not proceeds so I profit $68 over the year?

https://optioncreator.com/stwcjtb

 

[earth_imperator]

Yes Sep 2024. Ok so the P/L is showing as -$65.98 until expiration where it becomes +68 but the cost was $32?

Also it is showing P/L not proceeds so I profit $68 over the year?

https://optioncreator.com/stwcjtb

I don't know where you read -65.98. I see just +68 as the result. It's an arbitrage trade (just check your numbers again).

This online tool cannot know the margin requirements or cash requirements of the brokers.
It just says what the outcome ($) is. So you have to calc the CostBasis and the Profit yourself
by consulting the handbook of your broker, and by using also this very output of this program.

Check for example these tables of a broker for margin and cash accts:
https://www.tradestation.com/pricing/options-margin-requirements/

 

[wxytrader]

I don't know where you read -65.98. I see just +68 as the result. It's an arbitrage trade (just check your numbers again).

This online tool cannot know the margin reuirements or cash requirements of the brokers.
It just says what the outcome ($) is. So you have to calc the CostBasis and the Profit yourself
by consulting the handbook of your broker, and by using also this very output of this program.

Check for example these tables of a broker for margin and cash accts:
https://www.tradestation.com/pricing/options-margin-requirements/

Ah read that wrong. ok so p/l will be between $65.98 --> $68
Margin requirements should be the cost of the trade or whatever it is for basic debit spreads as essentially this is 2 debit spreads. Actually isn't it basically a reverse iron condor?

 

[taowave]

Oh boy,I knew i shouldnt have gone down this road.I was o ly trying to illustrate that debit spreads and credit spreads ,same strike and expiry are "interchangeable"

Ah read that wrong. ok so p/l will be between $65.98 --> $68
Margin requirements should be the cost of the trade or whatever it is for basic debit spreads as essentially this is 2 debit spreads. Actually isn't it basically a reverse iron condor?

 

[wxytrader]

Oh boy,I knew i shouldnt have gone down this road.I was o ly trying to illustrate that debit spreads and credit spreads ,same strike and expiry are "interchangeable"

Ok so a box spread is a synthetic long, and a synthetic short. Can somebody give me an example of this setup that shows a positive outcome at expiry?

I tried it but showing as a loss at expiry: https://optioncreator.com/stwcjtb

https://alphaarchitect.com/2023/05/box-spreads-an-alternative-to-treasury-bills/

 

[earth_imperator]

Yes Sep 2024. Ok so the P/L is showing as -$65.98 until expiration where it becomes +68 but the cost was $32?

Also it is showing P/L not proceeds so I profit $68 over the year?

https://optioncreator.com/stwcjtb

I think it's a "Long (Debit) Iron Condor" (or aka Box Spread). The broker requirement for this is the net premium (cf. above broker table), ie the said $32. Then the profit is 68/32*100 = 212.5% (if the trade data are correct).

 

[wxytrader]

I think it's a "Long (Debit) Iron Condor". The broker requirement for this is the net premium (cf. above broker table), ie the said $32. Then the profit is 68/32*100 = 212.5% (if the trade data are correct).

That can't be right. Essentially you are locking in a guarantied profit.

 

[earth_imperator]

That can't be right. Essentially you are locking in a guarantied profit. As mentioned the difference is the real world fill price will probably wipe it out.

Yes, I told you "Arbitrage" just means exactly that.
So, I said "check your data"...

 

[wxytrader]

Yes, I told you "Arbitrage" just means exactly that.
So, I said "check your data"...

I been running it through and everything comes up a big nothing burger. Show me an example with current prices how you actually are profitable at expiry.

Are we talking reverse iron condor/2 debit spreads or a synthetic long with a synthetic short?

 

[longandshort]

Oh boy,I knew i shouldnt have gone down this road.I was o ly trying to illustrate that debit spreads and credit spreads ,same strike and expiry are "interchangeable"

lmao!