Studying LongPutButterfly

Idiots w/o any clue, please keep out of this discussion as this here aims to find some results by studying hard...
I'm interested in solutions, not your eternal hate shit, you idiot morons!
You can join the others, if you so desire... :-)
 
Top of my head, max profit = difference between strikes plus credit or minus debit

Quanto said:
I just came up with this formula (not much tested yet):
MaxProfit = max(K_center - K_lower - NetPremium, K_upper - K_center - NetPremium)
Works also for different upper and lower strike distances from the center strike.
More...
 
STFU you idiot..

If you need a computer program to figure out the max profit on a fly,you need to find a new hobby

Its options 101

Dont lose your day job




Quanto said:
You have no clue, either bring verifyable facts, or otherwise better keep out.
More...
 
taowave said:
STFU you idiot..

If you need a computer program to figure out the max profit on a fly,you need to find a new hobby

Its options 101

Dont lose your day job
More...
Bye, bye you POS!
I indeed need a computer program, b/c I need to code this into an options scanner, you brainless idi!
 
Code: 
test_LongPutButterfly_formulas:
  fC=0 S=10.0000 DTE=60.00 IV=80.0000 rPct=0.00 qPct=0.00
  L1(K=9.00 Pr=0.7873 Q=1.00 Sum=-0.7873)
   S(K=10.00 Pr=1.2883 Q=2.00 Sum=2.5767)
  L2(K=12.00 Pr=2.6327 Q=1.00 Sum=-2.6327)
  NetPr=-0.8433 MaxProfit=1.1567
  MinProfit_1=0.1567 MinProfit_2=-0.8433
  BEP_1=0.0000 BEP_2=11.1567
 
Code: 
test_LongButterfly_formulas:
  Put S=10.0000 DTE=7.00 Lx_IV=300.0000 S_IV=ATMIV=250.0000 rPct=0.00 qPct=0.00
  L1(K=5.00 Pr=0.0571(IV=300.00) Q=1.00 Sum=-0.0571)
   S(K=10.00 Pr=1.3743(IV=250.00) Q=2.00 Sum=2.7486)
  L2(K=15.00 Pr=5.4377(IV=300.00) Q=1.00 Sum=-5.4377)
  L1_abs_K_diff=5.0000 L2_abs_K_diff=5.0000 icmp=0
  NetPr=-2.7462 MaxPL=2.2538
  MinPL1=-2.7462 MinPL2=-2.7462
  BEP1=7.7462(-22.5385%) BEP2=12.2538(22.5385%)
  MA: CB=-2.7462 MinPLpct1=-100.00 MinPLpct2=-100.00 S.K.PLpct=82.07(w=82.07 m=1251.54)
  CA: CB=-22.7462 MinPLpct1=-12.07 MinPLpct2=-12.07 S.K.PLpct=9.91(w=9.91 m=50.76)
https://optioncreator.com/stl6bwo
It's all relative :)
In a MarginAcct (MA) one can make much more profit than in a CashAcct. (CA), but the risk is 100%,
whereas the risk in the CA for the same trade and same absolute return is only 12.07% (but amounting to the same absolute risk value like in MarginAcct)....
For this strategy, MarginAcct still looks much better than CashAcct (cf. the "m" value for monthly%...)
Hmm. is this analysis correct?... (yep, just checked again and it indeed seems to be right)
The studying continues...
 
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