straddle GE @25 & @30 entry price - Put @25 = $60 Call @30 = $25 Cataylst = earning call , Friday before the open
Don't have option quotes right now...what expirations? Also am I reading these prices wrong? How can a 25 put be worth $60? Wouldn't the stock have to go to Negative 35 to be in the money? What am I missing? Also, do you expect an $85 move on earnings? I am sorry for sounding dumb. I know I have to be misinterpreting what I am seeing here.
July , expire next week, we'll see if GE moves after the earning call THe calls are trading @$30 and the puts @$55 right now
I guess I am misreading the whole thing...what strike prices are you talking about....maybe I got your prices mixed up with strike prices...only thing I can think of.
The trick is your put and calls act like a hedge, therefore if its a bad call you go short on the stock and you're covered by the calls, and if its a good call , you go long and are covered by the puts, it a double plus, plus if something happens after the call your hedged
OK..one last time.. tell me the STRIKE prices of the calls and the puts and the cost of the options so I can understand....please???