Wednesday, April 05, 2006

AMAT buy strangle

AMAT buy Strangle: buy Call Strike 19 at 0.30, buy Put strike 18 at 0.15. Current price of AMAT at 18.36
Exit strategy1: at 17.5 close put position - then close call at premium of atleast 0.05
Exit Strategy2: at 19.5 close call position - then close put at premium of atleast 0.05
minimum return goal 11.11%, max loss 0.45 cents per contract

AMAT Call Put Total Val P/L
17 0 1 1 0.55
17.25 0 0.75 0.75 0.3
17.5 0 0.5 0.5 0.05
17.75 0 0.25 0.25 -0.2
18 0 0 0 -0.45
18.25 0 0 0 -0.45
18.5 0 0 0 -0.45
18.75 0 0 0 -0.45
19 0 0 0 -0.45
19.25 0.25 0 0.25 -0.2
19.5 0.5 0 0.5 0.05
19.75 0.75 0 0.75 0.3
20 1 0 1 0.55

No comments: