Adjustment math question

Discussion in 'Options' started by KevinO, Aug 18, 2011.

  1. KevinO

    KevinO

    So here is what I did so far:
    Bear put
    Short sept 114 put @ 5.50
    Long sept 115 put @ 5.94
    net debit = .44/contract (5.94 - 5.50)

    Here was my adjustment:
    Long Jan SPY 114 & Short Sept SPY 115 = 3.99 net debit
    Long was bought @ 6.36
    Short was sold @ 2.81

    So now what is in my portfolio is this:
    Long Jan SPY 114 & Short Sept SPY 114 = 3.99 (.44 + 6.36 - 2.81)

    If I wanted to adjust back to a bear put how would my math go?
    Jan 114 is trading at ~8.80
    Sept 115 is trading at ~5.10
    Would it go something like this:
    .44 + 5.10 - 8.80 = -326 ?
    Would I realize any profit?
     
  2. KevinO

    KevinO

    I believe I figured it out.
    3.99 + 5.10 - 8.80 = ~.29
     
  3. spindr0

    spindr0

    Add up you debits and credits and VOILA !