Need help with probabilities

Discussion in 'Options' started by Akromas, May 5, 2014.

  1. :)
     
    #11     May 7, 2014
  2. Like Windlesham alluded to, the price that you pay for the spread vs the spread between the two strikes gives you the odds of "success". Of course, note that "success" here is defined as making the max possible amt on the position, rather than making more than you spent.
     
    #12     May 7, 2014