To all stock/options investment gurus,
Security: Ebay
Current Price: 33.69
Assumption - Till Jan08 price will be between 0.7 * 33.69 and 2 * 33.69
Leg1 - Collar(call sp,call prem,put sp,put prem)=(1750, 1700, 1750, 20)
Leg2 - VerticalcallSpread(bcall sp,bcall prem,scallsp ,scallp prem)=(5500, 25, 4000, 215)
Leg 3 - VerticalputSpread(bputsp,bputprem,sput sp,sput prem)=(4000, 730, 5500, 2120)
Table of returns is as follows:
Initial Investment: 108
ProjectedPrice,MoneyIn,Gains,GainsPerc
20 250 142 (131.4814814814815)
22 250 142 (131.4814814814815)
24 250 142 (131.4814814814815)
27 250 142 (131.4814814814815)
29 250 142 (131.4814814814815)
31 250 142 (131.4814814814815)
34 250 142 (131.4814814814815)
Same till price = 69.
What is wrong? Commissions are not considered.
2007-02-23
06:19:28
·
4 answers
·
asked by
AC
1