Hello friends, Could i get a better explanation of this trade? I sold 95 slv 15.50 calls for 44 cents on May 8 and bought 152 16 calls for 22 cents. Current prices are 1.32 for 15.50 calls and 82 cents for 16 dollar calls? position dollar amount says $8433 for the short calls and $8842 for the 16$ long calls. What does that mean? Am I breaking even. I should be up ? Thanks
Maybe I am wrong, but this is how I calculated: Initial long:152 * 22 = 3344 Initial short: 95*44 = 4180 Current long:152 * 82 = 12464 Current short:95 * 132 = 12450 Profit on long: 12464 - 3344 = 9120 Profit on short: 4180 - 12450 = -8270 Total profit:9120 - 8270 = 850
Yes, that's what happened. I guess I thought I would get a little more out of the trade. There is something going one with length to expiration that if I was further out it should have worked better