mortlightman 8:50 am on Monday, June 27, 2016

STO SPX IBF 2040/2050/2050/2060 9.05…

STO SPX IBF 2040/2050/2050/2060 9.05 Cr this Friday

Bobbie 9:30 am on Monday, June 27, 2016

Mortlightman, what is the area of profit? It was an interesting trade last week. I lost $43 including commission. I decided to close mine before the big pullback. I was surprised that I was able to get out.
- Bobbie 9:38 am on Monday, June 27, 2016
  
  How do you calculate it?
  - fuzzballl 9:58 am on Monday, June 27, 2016
    
    Max gain $905 per condor. Breakeven stock price of 2040.95 and 2059.05.
    Max loss is the difference between what he collected and the width of the wings….in this case $95 per condor.
  - Jeff 10:00 am on Monday, June 27, 2016
    
    You calculate max loss by subtracting the credit taken in, 9.05, from the width of the spread in either direction, which is 10.00 (2050-2040=10, 2060-2050=10). So max loss is .95. You calculate profit range by going the amount of the credit, 9.05, away from the short strikes (2050 put and 2050 call) in both directions. At expiration, you will have a profit range between 2040.95 and 2059.05.
    - Bobbie 12:40 pm on Monday, June 27, 2016
      
      Thanks, Jeff.
- thomberg1201 10:58 am on Monday, June 27, 2016
  
  Bobbie-Check out Tasty Trade and their Dough platform, you can set up a trade and it will provide some of that information.
  - fuzzballl 11:01 am on Monday, June 27, 2016
    
    Think or Swim also. When you review the trade prior to sending all the info is right there. Very slick…
    - Bobbie 12:30 pm on Monday, June 27, 2016
      
      Thank you!

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