Monday, April 9, 2012

SPY Options Straddle

I've been dabbling in options for a month or so now, most being paper trades.  Here is one i am thinking about currently. 

Strategy 1;
 Buy 1 April 12 138 Call for $1.25 and Buy 1 April 12th 138 Put for $.71. Max loss $196. Upper BE $140, Lower BE $136.


Strategy 2;
Buy 1 May 12th 138 Call for $3.30 and Buy 1 May 12 138 Put for $2.71.  Max loss $601.  Upside breakeven is $144 and downside breakeven $132


2 comments:

  1. Strategy 1; As of 4/12/12
    April 12 Call 138 - $1.81 (+44.8%)
    April 12 Put 138 - $.77 (+8.45%)

    Strategy 2;
    May 12 Call 138 - $3.33 (+.91%)
    May 12 Put 138 - $2.25 (-17.34%)

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    Replies
    1. Strategy 1; As of 4/16/12
      April 12 Call 138 - $.78 (-37.5%)
      April 12 Put 138 - $1.30 (+83%)
      Total P/L $208-Cost(196) = +$12 ~ 6.12% ROI

      Strategy 2;
      May 12 Call 138 - $2.57 (-22%)
      May 12 Put 138 - $3.07 (+13%)
      Total P/L $564-Cost(601) = -$37 ~ (-6.15%)ROI

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