SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Strategies & Market Trends : Options 201: Beyond Obi-Wan-Kenobe

 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Dominick who wrote (749)2/23/2003 1:15:16 PM
From: tyc:>  Read Replies (1) of 1064
 
<<But entering stock price 13.87, 20 strike, 22% volatility for 3 months and I get zero price for the calls and 6 1/4 for the put.>>

I stupidly forgot to tell you to use the strike price as the current price. The average price is 21.87, so that should be entered as the strike AND the current stock price. Without being able to calculate 2 sd's try this. Calculate the profit range of a short straddle... you will find that it extends ~ from the bottom BB to the top BB. i.e. from $19.67 to 24.08.

I'm using Canadian prices simply because my chart did so.
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext