Bullshit,and I am not double checking....You should be doing that shit in your head (Difference between strikes,plus credit or minus debit)/ number of net short options
Well I was trying to calculate with the stock position not just the ratio spread...so it was more like a fly.
Long stock plus the 1x2?? Easy to calculate, but your risk profile on the downside doesn't resemble a fly..
You can replicate a fly upside by selling two calls at y, selling a call at z, and buying a put under the market (x).
Long stock to fly. I mean buying a call at z. Long 100 shares -> long put at x -> short two calls at y -> long call at z.
I think I have the most intuitive PnL chart out there. I've been working on it since my capital is stranded at the moment... The only data I need to enter manually is the IV. The options prices are calculated using Black Scholes formula, the strikes are adjusted based on a standard deviation calculation, the sides are automatically adjusted to fit the strategy selected. I can just run through the drop down menu and it will update the diagram accordingly with all the pnl's. (I can also adjust the price/strikes/date etc.) Here are some examples:
So back to the original question...the stock repair strategy works. It lowers my break even (MARA) to 21.69 from 22.25 with only adding -$101.25 in risk. (This is a call ratio spread with stock. Basically it is a long vertical call spread coupled with a covered call) If I lower the long call strike to 18 I get it down to just under 20.91 with -$275.22 added risk. If I lower the long call strike to 17 I get down to 20.75 with $-582.60 in risk.
It correlates with option creator...just calculate a vertical spread and a covered call and add to stock pnl @ x price.