my fault i should have said Strangle
Strangles & Straddles
- Thread starter RainMaker3000
- Start date
This cannot be right....what you are saying is that the 30 calls need to have the stock go to 55 to break even, and the 25 puts need to go to negative 35 to break even. This is obviously WRONG!
Of course I may be mistaken, but since I was a Market Maker on the CBOE, I "should" understand this. But I have been mistaken other times in my life. Perhaps you can better explain.
Thanks,
RS7
PS...and to break even on both positions, then the stock needs to go to minus $55 or positive $115.
GE : the strike are @25 & 30 in order for the options to be in the money GE has to move above 30 or below 25 , i bought the JULy put @$60 per contract & the July call @$25 per contract
The fact the put is more expensive is that intrest rates are low and IV on the puts is higher, thus the calls are cheaper because they further out of the money with lower IV and interest rate
The fact the put is more expensive is that intrest rates are low and IV on the puts is higher, thus the calls are cheaper because they further out of the money with lower IV and interest rate
There are plenty of buyers for those calls and puts look at todays volume on those options
THe fact is most of the people that are selling this options are delta hedging , thus if GE has a good call is bound to move higher or lower faster.
THe fact is most of the people that are selling this options are delta hedging , thus if GE has a good call is bound to move higher or lower faster.
I'm already up 30% on the calls and down only 12% on the puts
I'm looking for about 1800% gain on the calls or 300% on the puts
I'm looking for about 1800% gain on the calls or 300% on the puts