Stock repair strategy

[taowave]

Bullshit,and I am not double checking....You should be doing that shit in your head

(Difference between strikes,plus credit or minus debit)/ number of net short options

Taowaves math was wrong.

 

[wxytrader]

Bullshit,and I am not double checking....You should be doing that shit in your head

(Difference between strikes,plus credit or minus debit)/ number of net short options

Well I was trying to calculate with the stock position not just the ratio spread...so it was more like a fly.

 

[taowave]

Long stock plus the 1x2??

Easy to calculate, but your risk profile on the downside doesn't resemble a fly..

Well I was trying to calculate with the stock position not just the ratio spread...so it was more like a fly.

 

[poopy]

Well I was trying to calculate with the stock position not just the ratio spread...so it was more like a fly.

You can replicate a fly upside by selling two calls at y, selling a call at z, and buying a put under the market (x).

 

[taowave]

Lost me there

You can replicate a fly upside by selling two calls at y, selling a call at z, and buying a put under the market

 

[poopy]

You can replicate a fly upside by selling two calls at y, selling a call at z, and buying a put under the market (x).

Lost me there

Long stock to fly. I mean buying a call at z.

Long 100 shares -> long put at x -> short two calls at y -> long call at z.

 

[wxytrader]

I think I have the most intuitive PnL chart out there. I've been working on it since my capital is stranded at the moment...

The only data I need to enter manually is the IV. The options prices are calculated using Black Scholes formula, the strikes are adjusted based on a standard deviation calculation, the sides are automatically adjusted to fit the strategy selected. I can just run through the drop down menu and it will update the diagram accordingly with all the pnl's.

(I can also adjust the price/strikes/date etc.)

Here are some examples:

 

[wxytrader]

So back to the original question...the stock repair strategy works. It lowers my break even (MARA) to 21.69 from 22.25 with only adding -$101.25 in risk.

(This is a call ratio spread with stock. Basically it is a long vertical call spread coupled with a covered call)

If I lower the long call strike to 18 I get it down to just under 20.91 with -$275.22 added risk.

If I lower the long call strike to 17 I get down to 20.75 with $-582.60 in risk.

 

[taowave]

Your spreadsheet inputs look off..very off

So back to the original question...the stock repair strategy works. It lowers my break even (MARA) to 21.69 from 22.25 with only adding -$101.25 in risk.

(This is a call ratio spread with stock. Basically it is a long vertical call spread coupled with a covered call)

View attachment 346290


If I lower the long call strike to 18 I get it down to just under 20.91 with -$275.22 added risk.

If I lower the long call strike to 17 I get down to 20.75 with $-582.60 in risk.

 

[wxytrader]

Your spreadsheet inputs look off..very off

It correlates with option creator...just calculate a vertical spread and a covered call and add to stock pnl @ x price.