The article discusses the market prices of futures and equity options as well as the upper and lower break-even prices. It notes that the prices of futures and equity depend on price curves depicted by log-log parabolas and are determined by the upper and lower break-even prices which refer...
This is the option’s breakeven point. At 110 the option will be worth $10 at expiry, removing all the $10 option premium received. No profit or loss is made; the trader will break even: Premium Received: $10 Loss from call option: -$10 Profit/Loss on trade: 0 The stock...
向上移仓的好处是,投资者的风险一点也没有增加,但是头寸的收支平衡点(break-even point)被提高了,也就是说,此时XYZ即使下跌幅度比之前小,投资者也可能收支平衡甚至获利。不过,这样付出的手续费会增加,也会限制最大潜在盈利。 The Calendar Spread Strategy - 日历套利策略 (判断方向正确,但是股价下跌需要更多时间)如...
The article discusses the market prices of futures and equity options as well as the upper and lower break-even prices. It notes that the prices of futures and equity depend on price curves depicted by log-log parabolas and are determined by the upper and lower break-even prices which refer...
Break Even Point of Protective Call: Because you incur a cost on the call options, the underlying stock needs to fall to cover that cost. The breakeven point is the point beyond which the Protective Call position would continue to profit. Breakeven = Initial stock price - cost of call opt...
Bull Call Spread Break-Even Point Besides the two strikes, the most important point in the chart is the moment when total payoff crosses zero and the trade starts being profitable – thebreak-even point. It is the underlying price at which the lower strike call option value is exactly equal...
The risk associated with this trade is limited to $1,100. The break-even point of an index call option trade is the strike price plus the premium paid. In this example, that is 516, or 505 plus 11. At any level above 516, this particular trade becomes profitable. ...
On the long strangle, the break-evens are the lower strike minus the debit and the higher strike plus the debit. For the trades to be profitable at expiration, the underlying stock must be below the lower break-even or above the higher break-even. Many traders prefer to close the ...
Option Strategy Payoff Calculator P/L at expiration, risk/reward ratios, break-even points for 57 option strategies. Compare two strategies in one chart.[more...] Option Strategy Simulator Advanced strategy modeling: what-ifs, aggregate Greeks, implied volatility. Also intraday.[more...] ...
However, the call option becomes infinitely valuable as the market trades higher. So, after you break away from your break even point your position has unlimited profit potential. The same situation occurs if the market sells off. The call becomes worthless as trades below $37.72 (strike of $...