Your assumptions are correct but I don't get the part when you say 'You make $2.45'
I paid $255 to enter the trade, sold at $285
I entered a Bull Call Spread of 215/220 of Face Book. When I entered this trade on TOS, it said my max profit is $245. However, when the stock...
Ok, what i meant was Purchasing a Call with the anticipation the price of a stock will go up in value upon expiry
Let's say i put in a straight bull trade, which expires in one month. However, after the trade is filled, i totally forget i have an open...
Buying a put equates to short selling? Thereafter, the trader will sell a put at a lower price (compared to his buy put price) to make a profit....
For iron condor, how wide a gap should the 2 pairs of Call and Put legs be?
I have noticed sometimes the open interest can be zero. But the open interest of the price point above and below the zero open interest price...
Thanks for your reply. So when i put in this trade, the money i spent is due to the long leg and in the event the short leg expire worthless,...
Would you be able to share the similarities and differences between the 2 strategies? Thank you
Hi Bum, Thanks for your reply. When you mention close 2 positions, do you mean close the 'buy a call' trade and also close the 'bull call...
I entered a BUY Vertical trade -- BUY +1 Vertical AMZN 100 20 Sep 19 1807.5/1820 CALL @ 6.50 LMT (To open/to close) The max profit is $600, max...
No one can give me a straight answer. I just want a Yes / No answer weather my understanding is correct. I also don't want links to more reading...
From what i understand, to enter a Bull call spread, one Buy a ITM call and Sell a OTM call at the same time to create a pair trade. Everything...
From my understanding of Implied volatility (IV), high IV means the stock price will fluctuate in a wider price range. This is compared to low IV...
Debit amount - From what i gather, its determined by market makers. There is no calculation one can use to estimate the debit amount? Hence, the...
Ok, let's say i buy Call spread 1x$20C/-1x$25C, when i put in the trade, how is my debit amount (i.e. the amount of money i have to pay)...
Can you provide examples? If at same strikes for both legs in the spread, how to make money?
If one is bullish about the market, one would put in a Bull Call Spread trade. But what if one is bearish about the market, what vertical spread...
If a trader Sell a Put, the trader at the opposite end of this trade is Buying a Put?
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