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  • Stock Price at Expirati On

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    virat kohli
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    The document describes a stock position and options strategy involving XYZ stock. 100 shares of XYZ stock were bought at $50. A 40 call was bought for $3 and two 45 calls were sold for $1.50 each. The profit/loss of this position is shown for various stock prices at expiration. A second strategy involves a long call, short call, and short put position. The payoff of this combined position is illustrated in a chart for different underlying stock prices.

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    The document describes a stock position and options strategy involving XYZ stock. 100 shares of XYZ stock were bought at $50. A 40 call was bought for $3 and two 45 calls were sold for $1.50 each. The profit/loss of this position is shown for various stock prices at expiration. A second strategy involves a long call, short call, and short put position. The payoff of this combined position is illustrated in a chart for different underlying stock prices.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as xlsx, pdf, or txt
    36 views5 pages

    Stock Price at Expirati On

    Uploaded by

    virat kohli
    The document describes a stock position and options strategy involving XYZ stock. 100 shares of XYZ stock were bought at $50. A 40 call was bought for $3 and two 45 calls were sold for $1.50 each. The profit/loss of this position is shown for various stock prices at expiration. A second strategy involves a long call, short call, and short put position. The payoff of this combined position is illustrated in a chart for different underlying stock prices.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as xlsx, pdf, or txt
    of 5

    Stock:

    Bought 100 XYZ shares at $ 50. 50


    XYZ is currently trading at $ 40 when position was established 40

    Options:
    Buy 1, 60-day XYZ 40 call at $3.00(premium)
    Sell 2,60-day XYZ 45 calls at $1.50

    Four Cases:
    Stock at Expiration Gain/loss on XYZ stock(original stock)
    35 -15
    40 -10
    45 -5
    50 0
    55 5

    Stock Price at Expirati o


    0
    35 40 45
    -2
    -4
    -6
    Profit/Loss

    -8
    -10
    -12
    -14
    -16
    Axis Title
    Value of XYZ 40 Calls(Buy) Value of XYZ 45 Calls (Sell) Position Net Gain/loss
    0 0 -15
    0 0 -10
    5 0 0
    10 -10 0
    15 -20 0

    Price at Expirati on
    45 50 55

    Axis Title
    Option Call Call put
    Long/short Long Short Short
    Strike 750 730 660
    Premium 4.3 6.8 7.85
    Spot 688

    20
    CMP Long Call Short Call Short put Net flow
    590 -4.3 6.8 -62.15 -59.65 10
    600 -4.3 6.8 -52.15 -49.65
    0
    610 -4.3 6.8 -42.15 -39.65 590 600
    620 -4.3 6.8 -32.15 -29.65 -10
    630 -4.3 6.8 -22.15 -19.65 -20

    Pay off
    640 -4.3 6.8 -12.15 -9.65
    650 -4.3 6.8 -2.15 0.35 -30
    660 -4.3 6.8 7.85 10.35 -40
    670 -4.3 6.8 7.85 10.35
    -50
    680 -4.3 6.8 7.85 10.35
    690 -4.3 6.8 7.85 10.35 -60
    700 -4.3 6.8 7.85 10.35
    -70
    710 -4.3 6.8 7.85 10.35
    720 -4.3 6.8 7.85 10.35
    730 -4.3 6.8 7.85 10.35
    740 -4.3 -3.2 7.85 0.35
    750 -4.3 -13.2 7.85 -9.65
    760 5.7 -23.2 7.85 -9.65
    770 15.7 -33.2 7.85 -9.65
    780 25.7 -43.2 7.85 -9.65
    790 35.7 -53.2 7.85 -9.65
    20

    10
    JADE LIZARD STRATEGY
    0
    590 600 610 620 630 640 650 660 670 680 690 700 710 720 730 740 750 760 770 780 790
    -10

    -20
    Pay off

    Net Flow
    -30

    -40

    -50

    -60

    -70
    Spot
    0 780 790

    Net Flow

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