Tuesday, August 14, 2012

Trading AAPL through straddle and strangle

Seems like 7/18/12 was a narrow day  its wednesday..there are 2 more days to expiry
we have to see what we can get in first 15 mins
OK price is at 607  and 605 straddle are for 9.10
and 610 are for 9.0
price is at 607.50 and strangle 605/610  is for 6.50

lets see at end of day -  next day price is still at 610 and all of them lost almost 2 dollars each.

within same day 605 got the most is around 8.50
next day best price is around 9.0

610 straddle can get max value is 9.70

so on a day where price does not move at all this will happen.  on this day it hardly move for 5 dollars.

No comments:

Post a Comment