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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 won't 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: Long 20 Calls with K = 440 Assume - no dividends. Calculate the initial cash Short 10 Calls with K = 450 flow and the amount of interest it will accrue in 2 Long 10 Calls with K = 460 months with continuously compounded interest Short 20 Calls with K = 500 rate of 5%. Long 30 Puts with K = 396 Draw the options portfolio PAYOFF and P&L Short 20 Puts with K = 370 diagrams. Calculate your total maximum exposure. What are the break-even points? 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. Suggest your own strategy! 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 won't 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: Long 20 Calls with K = 440 Assume - no dividends. Calculate the initial cash Short 10 Calls with K = 450 flow and the amount of interest it will accrue in 2 Long 10 Calls with K = 460 months with continuously compounded interest Short 20 Calls with K = 500 rate of 5%. Long 30 Puts with K = 396 Draw the options portfolio PAYOFF and P&L Short 20 Puts with K = 370 diagrams. Calculate your total maximum exposure. What are the break-even points? 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. Suggest your own strategy
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