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Strategies & Market Trends : Advanced Option Strategies -- Ignore unavailable to you. Want to Upgrade?


To: David R. Doerr who wrote (101)8/2/1998 8:23:00 PM
From: Joe Waynick  Read Replies (1) | Respond to of 355
 
I get different numbers. Please tell me what I'm missing.

Buy 100 XYZ @ 63
Sell 1 XYZ CALL @ -5.625
Sell 1 XYZ PUT @ -5.125
Net cost basis 52.25

XYZ > 75
Stock profit (75-63) 12
Combination profit 10.75
22.75 / 38.40 = 59.25%

XYZ < 55
Stock cost (63+55/2) 59
Combo profit 10.75
Net cost basis 48.25

How do you come up with 53?