This cannot be right....what you are saying is that the 30 calls need to have the stock go to 55 to break even, and the 25 puts need to go to negative 35 to break even. This is obviously WRONG! Of course I may be mistaken, but since I was a Market Maker on the CBOE, I "should" understand this. But I have been mistaken other times in my life. Perhaps you can better explain. Thanks, RS7 PS...and to break even on both positions, then the stock needs to go to minus $55 or positive $115.
You dont think a July 30 call is worth $25, you must be losing your mind. I think he means 25 cents, that looks about right.
"strangle" meaning what? You are short the combination? If so, great trade....where did you find the buyers? Can I have their phone numbers?
GE : the strike are @25 & 30 in order for the options to be in the money GE has to move above 30 or below 25 , i bought the JULy put @$60 per contract & the July call @$25 per contract The fact the put is more expensive is that intrest rates are low and IV on the puts is higher, thus the calls are cheaper because they further out of the money with lower IV and interest rate
ahhhh...ok, my bad! I took it literally. Sorry for the confusion....he had me going. I just looked at it as it was written. Stupid assumption on my behalf! I feel DUMB, DUMB, DUMB!!!
There are plenty of buyers for those calls and puts look at todays volume on those options THe fact is most of the people that are selling this options are delta hedging , thus if GE has a good call is bound to move higher or lower faster.
Ok, got it... you wrote the prices, I thought it was in dollars, as it is usually expressed, not the cost of a contract, which is 100x the price. We were just on different wavelengths...Sorry.
I'm already up 30% on the calls and down only 12% on the puts I'm looking for about 1800% gain on the calls or 300% on the puts