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Re: March Silver Puts #4 / Lee/Coral/All

Hi Coral, All

To be completely clear on this:
The earlier posts assumed that the puts would NEVER GO ITM.

Thus the statement of guaranteed loss of $114 if the one strike away puts were sold.

That is only true if they NEVER go ITM.

If they did go ITM, there would be a "maximum profit" of $5000 less comm. of the difference of strike prices. For 1 point on Si, that would be $5000.

Thought I should be more precise about that.

Now, having prices out the same spread for the 20P this is what I get from Ox, assuming it were to fill.

When SIH11 at 28.671
Cost
Sell -1 (SIH119P).......0.02....-100
Buy 1 (SIH120P).........0.03....$150.00
Requirements
Total Cost..............50
Initial Requirement.....263.25
Maintenance Requirement.195
Total Requirements......263.25
Estimated Commission....25.98

I post this info because I clearly do not understand this "requirements" stuff. If the total cost of the transaction is $50. why should there be a "maintenance requirement" as shown ??

This I will have to look into with Ox. The trade was priced out as a 2-legged transaction.

I am starting to get the impression that not "too many" are fluent in futures options trading on the forum, or at least that are willing to comment on this series of posts.

Please comment if you have anything to offer.

Thanks, Lee

Messages In This Thread

Re: March Silver Puts #4 / Lee/Coral/All