Multivariate calculus, and math in general, involves a lot of rigid rules... so it's a fine line. If you literally want to use pencil and paper, that's OK too. You might be/become a great mathematician. IDK I'm sure you'll find your niche. I believe in you!
Here is what would have happened with the price drop on Tuesday: AUG9 111 atm put on Monday was @ 4.87 On Tuesday it would have been @ 9.21 when price was at 103.73 So we have a Pnl of 4.34... not even a 1:1 reward. Here are the results of the gap up this morning if you purchased a call yesterday. AUG9 103 atm call on Monday was @ 4.89, and today is @ 8.95 So we have a Pnl of 4.06... again not even a 1:1 reward. This is best case scenario too lol.
Buying 103 in a cash account will earn you 8-9% based upon current marks (NVDA?). Synthetic digital (103/104 cs) made 30%. The call doubled. WTF is your point?
(Yes NVDA) My point is that buying options suck as the title suggests when you take into account the probability of making profits versus the risk.
Well I watched a video on multivariable calculus. I went in knowing nothing at all, and somehow now I know even less.