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A trader places an order to sell 2 naked September call contracts on NFLX (Netflix) at a limit price of $28/share with a strike of
- A trader places an order to sell 2 naked September call contracts on NFLX (Netflix) at a limit price of $28/share with a strike of $540 when the stock trades at $513.
- If the order is executed, calculate the margin requirement for this trade.
- What is the break-even point on this trade?
- How would the answer to a) change if the trader is buying two call option contracts at that same price?
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