Question
30. 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
30. 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?
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Never Worry About Your Finances Again Money Management Made Smart
Authors: Georgiana Golden
1st Edition
979-8392911851
