You have put 1600 buy of stock should only be 800
Stock repair strategy
- Thread starter wxytrader
- Start date
Just showing that my sheet concurs with Option creator results:
The current break even is $22.25. If I open this position the break even drops to $19.63. As the price rises to the 22 short strike, the stock price loss decreases to -$3930, and the ratio spread gains $3930 so the position is at net 0. The position gains will be capped @ 22.
I can't get option creator pnl to work for the visual when adding the stock position to the ratio spread, but here it is on my sheet...so basically it is a covered call, and a vertical spread combined.
The cost to open is -$1515 so have to time it right which is now lol...anybody see anything wrong with these numbers?
The current break even is $22.25. If I open this position the break even drops to $19.63. As the price rises to the 22 short strike, the stock price loss decreases to -$3930, and the ratio spread gains $3930 so the position is at net 0. The position gains will be capped @ 22.
I can't get option creator pnl to work for the visual when adding the stock position to the ratio spread, but here it is on my sheet...so basically it is a covered call, and a vertical spread combined.
The cost to open is -$1515 so have to time it right which is now lol...anybody see anything wrong with these numbers?
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As far as I csn tell,you are long stock higher and looking at the 16-22 1x2 for a 1.01 debit.
Seems like you are on it...
Yes,the combined position can be looked at as a short put financing a vert..
Or a short straddle combined with a long call.
Seems like you are on it...
Yes,the combined position can be looked at as a short put financing a vert..
Or a short straddle combined with a long call.