Question
This is a chart of TSLA stock. Trader believes that the stock is forming a triangle, with a strong support around $405 and resistance around
This is a chart of TSLA stock. Trader believes that the stock is forming a triangle, with a strong support around $405 and resistance around $435. Timewise, the trader believes that this triangle wont hold for much longer and within a few weeks, there will be either a significant move up (to near $500) or down (toward $300), with minor support / resistance around $370 / $450 accordingly. Trader creates the following portfolio:
Assume no dividends. Calculate the initial cash flow and the amount of interest it will accrue in 2 months with continuously compounded interest rate of 5%.
Draw the options portfolio PAYOFF and P&L diagrams. Calculate your total maximum exposure. What are the break-even points?
Long 20 Calls with K = 440
Short 10 Calls with K = 450
Long 10 Calls with K = 460
Short 20 Calls with K = 500
Long 30 Puts with K = 396
Short 20 Puts with K = 370
Long 20 Puts with K = 360
Short 20 Puts with K = 300
All Options have December 18th, 2020 expiration. Look at the provided Options Chain and use appropriate Bid-Ask prices to place the trades.
Indicators Comparison Date Range 105D 1M 3M 6M YTD 1Y 2Y 5Y Max Interval 1D Candle Draw 500.00 TSLA 434.00 yahoofillance 450 00 1.434.00 Tesla, Inc. (TSLA) Nasdaqs - Nasdaq GS Real Time Price. Currency in USD 400.00 433.95 +8.03 (+1.89%) 350.00 At close: October 9 4:00PM EDT 300.00 25000 200.00 repengertian 150.00 di , y 100.00 + 50.00 Nov Dec 2020 Feb Mar Apr May Jun Jul Aug Sep Oct Calls for December 18, 2020 Implied Volatility Open Interest Contract Name Strike a Last Price Bid Ask Change % Change Volume TSLA201218C00420000 420.00 61.94 61.45 63.35 +0.89 +1.46% 69 1,652 74.79% TSLA201218C00425000 425.00 591.09 1,081.05 1,093.00 0.00 1 51 0.00% TSLA201218000430000 430.00 57.30 57.55 58.65 +0.50 +0.88% 169 877 75.20% TSLA201218C00435000 435.00 957.00 1,048.40 1,056.70 0.00 2 3 0.00% TSLA201218000440000 440.00 53.45 52.90 54.00 +0.40 +0.75% 167 2,602 74.77% TSLA201218C00450000 450.00 49.25 49.00 50.00 +0.05 +0.10% 366 2,058 74.90% TSLA201218000455000 455.00 315.75 0.00 0.00 0.00 1 2 3.13% TSLA201218C00460000 460.00 45.48 45.25 46.25 -0.57 -1.24% 75 952 74.95% Last Trade Date 2020-10-09 3:54PM EDT 2020-06-16 9:34AM EDT 2020-10-09 3:53PM EDT 2020-07-07 9:41 AM EDT 2020-10-09 3:58PM EDT 2020-10-09 3:55PM EDT 2020-07-09 5:06PM EDT 2020-10-09 3:58PM EDT 2020-07-09 5:06PM EDT 2020-10-09 3:50PM EDT 2020-07-09 5:06PM EDT 2020-10-09 3:53PM EDT 2020-07-09 5:06PM EDT 2020-10-09 2:53PM EDT 2020-07-09 5:06PM EDT 2020-10-09 3:57 PM EDT 2020-10-09 3:55PM EDT TSLA201218C00465000 465.00 152.32 0.00 0.00 0.00 1 1 3.13% TSLA201218C00470000 470.00 42.19 41.80 42.70 -0.45 -1.06% 52 1,199 75.01% TSLA201218000475000 475.00 490.44 0.00 0.00 0.00 1 1 3.13% TSLA201218000480000 480.00 38.80 38.40 39.50 -1.82 -4.48% 43 2,515 75.01% TSLA201218C00485000 485.00 134.67 0.00 0.00 0.00 1 1 6.25% TSLA201218000490000 490.00 35.44 35.35 36.05 -1.56 -4.22% 4 1,199 74.77% TSLA201218C00495000 495.00 326.49 0.00 0.00 0.00 8 11 6.25% TSLA201218C00500000 500.00 32.75 32.45 33.55 -0.97 -2.88% 312 13,832 74.98% TSLA201218C00510000 510.00 29.80 29.85 30.95 -3.02 -9.20% 37 688 75.05% Puts for December 18, 2020 Open Interest Contract Name Implied Volatility Last Trade Date Strike Last Price Bid Ask Change % Change Volume TSLA201218P00300000 2020-10-09 3:41PM EDT 300.00 8.45 8.20 8.65 -1.25 -12.89% 635 6.812 77.76% TSLA201218P00360000 2020-10-09 3:52PM EDT 360.00 22.71 22.20 22.85 -3.63 -13.78% 162 1,170 74.95% TSLA201218P00364000 2020-10-09 2:47PM EDT 364.00 24.65 23.60 24.25 -3.19 -11.46% 42 431 74.98% TSLA201218P00365000 2020-08-04 2:27PM EDT 365.00 5.10 2.50 9.80 0.00 1 19 48.72% TSLA201218P00368000 2020-10-09 2:03PM EDT 368.00 26.01 24.95 25.70 -2.93 -10.12% 22 566 74.91% TSLA201218P00370000 2020-10-09 3:48PM EDT 370.00 26.14 25.60 26.40 -3.84 -12.81% 27 1.144 74.81% TSLA201218P00372000 2020-10-09 3:48PM EDT 372.00 26.89 26.40 27.20 -2.51 -8.54% 16 368 74.89% TSLA201218P00375000 2020-08-27 1:02PM EDT 375.00 3.80 2.50 10.00 0.00 1 28 44.26% TSLA201218P00392000 2020-10-09 3:03PM EDT 392.00 35.60 34.55 35.35 -4.18 -10.51% 165 592 74.83% TSLA201218P00395000 2020-08-20 2:25PM EDT 395.00 4.28 1.50 4.50 0.00 1 146 24.37% TSLA201218P00396000 2020-10-09 2:59PM EDT 396.00 37.62 36.30 37.00 -2.62 -6.51% 33 228 74.71% Indicators Comparison Date Range 105D 1M 3M 6M YTD 1Y 2Y 5Y Max Interval 1D Candle Draw 500.00 TSLA 434.00 yahoofillance 450 00 1.434.00 Tesla, Inc. (TSLA) Nasdaqs - Nasdaq GS Real Time Price. Currency in USD 400.00 433.95 +8.03 (+1.89%) 350.00 At close: October 9 4:00PM EDT 300.00 25000 200.00 repengertian 150.00 di , y 100.00 + 50.00 Nov Dec 2020 Feb Mar Apr May Jun Jul Aug Sep Oct Calls for December 18, 2020 Implied Volatility Open Interest Contract Name Strike a Last Price Bid Ask Change % Change Volume TSLA201218C00420000 420.00 61.94 61.45 63.35 +0.89 +1.46% 69 1,652 74.79% TSLA201218C00425000 425.00 591.09 1,081.05 1,093.00 0.00 1 51 0.00% TSLA201218000430000 430.00 57.30 57.55 58.65 +0.50 +0.88% 169 877 75.20% TSLA201218C00435000 435.00 957.00 1,048.40 1,056.70 0.00 2 3 0.00% TSLA201218000440000 440.00 53.45 52.90 54.00 +0.40 +0.75% 167 2,602 74.77% TSLA201218C00450000 450.00 49.25 49.00 50.00 +0.05 +0.10% 366 2,058 74.90% TSLA201218000455000 455.00 315.75 0.00 0.00 0.00 1 2 3.13% TSLA201218C00460000 460.00 45.48 45.25 46.25 -0.57 -1.24% 75 952 74.95% Last Trade Date 2020-10-09 3:54PM EDT 2020-06-16 9:34AM EDT 2020-10-09 3:53PM EDT 2020-07-07 9:41 AM EDT 2020-10-09 3:58PM EDT 2020-10-09 3:55PM EDT 2020-07-09 5:06PM EDT 2020-10-09 3:58PM EDT 2020-07-09 5:06PM EDT 2020-10-09 3:50PM EDT 2020-07-09 5:06PM EDT 2020-10-09 3:53PM EDT 2020-07-09 5:06PM EDT 2020-10-09 2:53PM EDT 2020-07-09 5:06PM EDT 2020-10-09 3:57 PM EDT 2020-10-09 3:55PM EDT TSLA201218C00465000 465.00 152.32 0.00 0.00 0.00 1 1 3.13% TSLA201218C00470000 470.00 42.19 41.80 42.70 -0.45 -1.06% 52 1,199 75.01% TSLA201218000475000 475.00 490.44 0.00 0.00 0.00 1 1 3.13% TSLA201218000480000 480.00 38.80 38.40 39.50 -1.82 -4.48% 43 2,515 75.01% TSLA201218C00485000 485.00 134.67 0.00 0.00 0.00 1 1 6.25% TSLA201218000490000 490.00 35.44 35.35 36.05 -1.56 -4.22% 4 1,199 74.77% TSLA201218C00495000 495.00 326.49 0.00 0.00 0.00 8 11 6.25% TSLA201218C00500000 500.00 32.75 32.45 33.55 -0.97 -2.88% 312 13,832 74.98% TSLA201218C00510000 510.00 29.80 29.85 30.95 -3.02 -9.20% 37 688 75.05% Puts for December 18, 2020 Open Interest Contract Name Implied Volatility Last Trade Date Strike Last Price Bid Ask Change % Change Volume TSLA201218P00300000 2020-10-09 3:41PM EDT 300.00 8.45 8.20 8.65 -1.25 -12.89% 635 6.812 77.76% TSLA201218P00360000 2020-10-09 3:52PM EDT 360.00 22.71 22.20 22.85 -3.63 -13.78% 162 1,170 74.95% TSLA201218P00364000 2020-10-09 2:47PM EDT 364.00 24.65 23.60 24.25 -3.19 -11.46% 42 431 74.98% TSLA201218P00365000 2020-08-04 2:27PM EDT 365.00 5.10 2.50 9.80 0.00 1 19 48.72% TSLA201218P00368000 2020-10-09 2:03PM EDT 368.00 26.01 24.95 25.70 -2.93 -10.12% 22 566 74.91% TSLA201218P00370000 2020-10-09 3:48PM EDT 370.00 26.14 25.60 26.40 -3.84 -12.81% 27 1.144 74.81% TSLA201218P00372000 2020-10-09 3:48PM EDT 372.00 26.89 26.40 27.20 -2.51 -8.54% 16 368 74.89% TSLA201218P00375000 2020-08-27 1:02PM EDT 375.00 3.80 2.50 10.00 0.00 1 28 44.26% TSLA201218P00392000 2020-10-09 3:03PM EDT 392.00 35.60 34.55 35.35 -4.18 -10.51% 165 592 74.83% TSLA201218P00395000 2020-08-20 2:25PM EDT 395.00 4.28 1.50 4.50 0.00 1 146 24.37% TSLA201218P00396000 2020-10-09 2:59PM EDT 396.00 37.62 36.30 37.00 -2.62 -6.51% 33 228 74.71%
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