Look at the following information. Security Qty Bid Ask Invesco QQQ Trust ETF $399.61 $399.63 QQQ 14 JAN 2022 410 CALL 2
Posted: Wed May 18, 2022 11:28 pm
Look at the following information.
Security
Qty
Bid
Ask
Invesco QQQ Trust ETF
$399.61
$399.63
QQQ 14 JAN 2022 410 CALL
20
$0.07
$0.10
QQQ 14 JAN 2022 415 CALL
20
$0.01
$0.04
QQQ 14 JAN 2022 390 PUT
20
$0.35
$0.36
QQQ 14 JAN 2022 385 PUT
20
$0.17
$0.19
a. If you decide to enter into iron
condor spread, how would it be structured, and what would the
potential profit or loss be?
b. What is the spread’s profit-to-loss
ratio?
c. How much margin (buying power) does
this position require?
d. What are the breakeven points?
e. If the QQQ monthly historic
volatility is 2.65%, what is the expected return of this
spread?
Security
Qty
Bid
Ask
Invesco QQQ Trust ETF
$399.61
$399.63
QQQ 14 JAN 2022 410 CALL
20
$0.07
$0.10
QQQ 14 JAN 2022 415 CALL
20
$0.01
$0.04
QQQ 14 JAN 2022 390 PUT
20
$0.35
$0.36
QQQ 14 JAN 2022 385 PUT
20
$0.17
$0.19
a. If you decide to enter into iron
condor spread, how would it be structured, and what would the
potential profit or loss be?
b. What is the spread’s profit-to-loss
ratio?
c. How much margin (buying power) does
this position require?
d. What are the breakeven points?
e. If the QQQ monthly historic
volatility is 2.65%, what is the expected return of this
spread?