You are extremely bearish on the TresChaud Corporation, which is trading at 127 P/E and is at $484.72 per share. You che
Posted: Thu May 19, 2022 6:51 am
You are extremely bearish on the TresChaud Corporation, which is
trading at 127 P/E and is at $484.72 per share. You check the
option chain and decide to sell a bear call spread and then also
buy a put, all expiring in three weeks, as follows:
Option/Type
Strike
BTO
STO
Qty
Price
Total
TRECF JUN 17 CALL
480
X
-10
$25.80
$25,800
TRECF JUN 17 CALL
490
X
10
$23.75
-$23,750
TRECF JUN 17 PUT
480
X
1
$20.70
-$2,070
What is your total maximum potential
loss?
trading at 127 P/E and is at $484.72 per share. You check the
option chain and decide to sell a bear call spread and then also
buy a put, all expiring in three weeks, as follows:
Option/Type
Strike
BTO
STO
Qty
Price
Total
TRECF JUN 17 CALL
480
X
-10
$25.80
$25,800
TRECF JUN 17 CALL
490
X
10
$23.75
-$23,750
TRECF JUN 17 PUT
480
X
1
$20.70
-$2,070
What is your total maximum potential
loss?