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. 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
. 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:
What is your total maximum potential loss?
BTO STO Option/Type TRECF JUN 17 CALL TRECF JUN 17 CALL TRECF JUN 17 PUT Strike 480 490 480 Qty -10 10 1 Price $25.80 $23.75 $20.70 Total $25,800 -$23,750 -$2,070
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