An exemplary PnL diagram of an "Extended Collar" (CC + xLP): S=10, SC.K=7.5, LP.K=5, DTE=45
Watch the R:R
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Yes that's the optioncreator.com and I never trust it. Just use anything else and you'll get a better result
Worst Case Scenario in Covered Call trading
- Thread starter Quanto
- Start date
Yes that's the optioncreator.com and I never trust it. Just use anything else and you'll get a better result
Great reference.
With CC one does not expect to make any more than the credit one initiallly receives for the sale of the Call. In such a case it's to expect to earn the full credit, not more.
And: such mergers & acquisitions are usually very well known in advance via mandatory press releases and news, so one can act in-time accordingly.
So, I would not really count this as the worst-case scenario.
Every other tool will give you the same result.
lol, no.
Dude, he'll forget more than you'll ever know on the subject. He means the loss of oppo.
I know, but this is IMO a different topic.
Take your pills, old man...
Take your pills, old man...
This thread is all the Cialis that I need. The OP thinks he's discovered the wheel and doesn't understand basic synthetics. Where's the FreePut?