You will be harvesting your own options chain from BarChart.com (Links to an external site.) . All strategies need to use Activision Blizzard, Inc. (ticker: ATVI) as the underlying security. If for some reason, this website is not loading prices for you, then you are welcome to use another site. One alternative option is Big Charts (Links to an external site.), but there are many options chain vendors online. Ultimately, I want to see a screen snip of the options chain used for every options strategy below. If I cannot verify your math, then it is wrong. Use a strike month that is 2-3 months in the future. At the very top of your paper, I want to see two things: (1) the current price of ATVI at the time that you captured the options chain; and (2) a screen snip of the entire options chain (example below from a different company). I want to see you discuss each strategy using a table that looks like what I showed you in the textbook and for each strategy in the lesson. All formulas should be shown in this table for alloptions strategies in this paper. This is so that I can see exactly how you derived your numbers. If I need to hunt for your math and it looks like it might be wrong, then it will be marked wrong...show me how you calculated each and every value. Everything within the table should be in contract-level terms (i.e. $15.75 not $1,575), not total-dollar terms. You need to add a cell for "Net Premium PAID" to each table for the combination strategies (i.e., long straddle, bull call spread, and the collar).
- each one should have the matrix shown above and in the textbook.
- Every section should include all formulas shown and the answers clearly indicated
- you need to tell me why an investor would use the given strategy.
Construct a collar strategy.
Your put option should be 2-3 strikes below the current market price, and your call should be 2-3 strikes above the current market price. Ideally, the protection window should not be more than $20. Remember that this is a married strategy. See the discussion in the textbook if you are unsure about this. Calculate the net premium, the break-even point, the max profit, and the max loss for the strategy. Each of these four items must be clearly displayed.
atvi
apple inc.
Break Even point Max Profit Max Loss Strike @ $ xx.xx Call Buyer Call Seller Break Even point Max Profit Max Loss Strike @ $ xx.xx Put Buyer Put Seller Activision Blizzard (ATVI) 79.99 +0.38 (+0.48%) 07/24/20 (NASDAQ] OPTIONS PRICES for Fri, Jul 24th, 2020 Expiration: 2020-11-20 (m) Near-the-Money Side-by-Side download 119 Days to expiration on 2020-11-20 Implied Volatility: 38.77% Calls Puts Links Type Last %Chg Bid Ask Volume Open Int Type Last %Chg Bid Ask Volume Open Int Last Trade Avg IV Links Last Trade Avg IV Strike 07/10/20 38.77% 55.00 Call 27.01 +7.18% 23.85 27.40 10 68 Put 0.83 +6.41% 0.78 1.17 2 173 07/24/20 38.77% *** Call 22.88 +9.47% 21.55 24.00 3 27 07/07/20 38.77% 57.50 Put 0.97 -14.16% 0.98 1.60 500 723 07/21/20 38.77% : Call 20.60 -12.38% 20.50 22.90 1 229 07/24/20 38.77% 60.00 Put 1.37 +8.73% 0.40 2.73 7 867 07/24/20 38.77% Call 19.54 -5.28% 17.05 20.65 1 37 07/20/20 38.77% 62,50 Put 1.56 +3.31% 1.21 3.25 103 565 07/22/20 38.77% : Call 17.80 -4.81% 16.50 18.75 4 133 07/22/20 38.77% 65.00 Put 2.13 +12.11% 1.58 2.49 53 951 07/24/20 38.77% . Call 17.00 +16.52% 14.40 16.40 1 119 07/23/20 38.77% 67.50 Put 2.65 +10.88% 1.70 2.95 1 382 07/23/20 38.77% : Call 13.57 -9.53% 13.10 14.85 8 466 07/24/20 38.77% 70.00 Put 3.35 +13,56% 3.10 3.30 38 1,040 07/24/20 38.77% Call 11.44 -4.83% 10.55 12.35 49 265 07/23/20 38.77% 72.50 Put 3.45 -11.54% 3.15 4.15 10 297 07/23/20 38.77% Call 9.71 -0.41% 8.95 10.20 31 472 07/24/20 38.77% 75.00 Put 5.15 +30.71% 4.10 4.95 24 223 07/24/20 38.77% Call 8.65 +5.88% 8.10 8.65 1 201 07/24/20 38.77% 77.50 Put 4.75 -12.04% 5.20 6.50 42 107 07/23/20 38.77% Call 6.95 +2.21% 6.90 7.30 73 7,499 07/24/20 38.77% 80.00 Put 5.80 -8.66% 6.40 7.30 9 201 07/23/20 38.77% .. Call 5.85 +1.74% 5.75 6.00 3 186 07/24/20 38.77% 82.50 Put 8.90 +11.95% 8.05 8.50 23 153 07/24/20 38.77% Call 4.70 +2.17% 4.75 4.95 55 819 Put 8.90 -1.66% 9.35 10.00 45 70 07/23/20 38.77% : 07/24/20 38.77% 85.00 07/24/20 38.77% 87.50 *** Call 4.10 -15.46% 3.65 4.60 4 30 Put 12.35 +7.39% 10.65 11.95 35 36 07/14/20 38.77% Call 3.30 +3.12% 3.05 3.90 28 567 07/24/20 38.77% 90.00 Put 14.55 -18.07% 12.90 13.75 6 19 07/16/20 38.77% *** Call 2.16 +5.37% 2.06 3.00 25 116 07/24/20 38.77% 95.00 Put 0.00 unch 15.35 19.20 0 0 N/A 38.77% *** Call 1.15 -11.54% 0.75 1.80 3 302 07/24/20 38.77% 100.00 Put 20.31 -5.36% 20.60 22.40 1 4 07/10/20 38.77% ... Call 0.69 -37.27% 0.22 1.37 10 280 07/23/20 38.77% 105.00 Put 0.00 unch 24.30 27.00 0 0 N/A 38.77% : Call 0.69 -14.81% 0.50 0.90 12 116 07/24/20 38.77% 110.00 Put 0.00 unch 28.90 32.75 0 0 N/A 38.77% ... Call 0.45 -6.25% 0.08 1.14 42 29 07/24/20 38.77% 115.00 Put 0.00 unch 33.55 37.50 0 0 N/A 38.77% Call 0.34 -15.00% 0.30 0.47 8 155 07/24/20 38.77% 120.00 Put 0.00 unch 38.65 42.40 0 0 N/A 38.77% .. 119 Days to expiration on 2020-11-20 Implied Volatility: 33.91% Calls Puts Links Type Last %Chg Bid Ask Volume Open Int Last Trade Avg IV Strike Type Last %Chg Bid Ask Volume Open Int Last Trade Avg IV Links * Call 57.20 +0.14% 55.00 59.35 9 466 07/24/20 33.91% 325.00 Put 12.80 -1.99% 11.10 12.80 219 2,229 07/24/20 33.91% *** *** Call 53.72 +0.41% 51.50 55.55 4 455 07/24/20 33.91% 330.00 Put 14.04 -2.02% 11.60 14.40 151 841 07/24/20 33.91% *** *** Call 43.53 -15.72% 47.65 52.15 1 386 07/24/20 33.91% 335.00 Put 15.60 -1.89% 12.95 15.80 195 404 07/24/20 33.91% : Call 43,44 -7.75% 44.00 48.05 2 472 07/24/20 33.91% 340.00 Put 17.01 -0.41% 14.45 16.90 434 1,923 07/24/20 33.91% *** : : Call 40.95 -5.38% 40.70 44.85 6 851 07/24/20 33.91% 345.00 Put 19.10 unch 16.00 18.90 24 598 07/24/20 33.91% : 1 Call 39.49 -2.73% 37.80 41.60 12 1,329 07/24/20 33.91% 350.00 Put 19.87 -3.07% 17.85 20.45 121 1,362 07/24/20 33.91% *** *** Call 35.48 -4.11% 36.00 38.85 7 276 Put 22.10 -2.43% 19.80 22.55 22 256 07/24/20 33.91% 1 07/24/20 33.91% 355.00 07/24/20 33.91% 360.00 Call 33.50 -3.18% 31.55 36.00 61 699 Put 24.48 -3.62% 22.00 24.65 720 729 07/24/20 33.91% *** Call 30.35 -2.10% 30.35 33.15 95 461 Put 26.35 -3.62% 23.85 26.60 57 696 07/24/20 33.91% : 07/24/20 33.91% 365.00 07/24/20 33.91% 370.00 *** Call 28.00 -3.68% 27.30 30.30 138 1,099 Put 29.15 -0.34% 26,30 29.00 55 1,266 07/24/20 33.91% *** *** Call 26.10 -1.69% 24.20 27.95 407 459 07/24/20 33.91% 375.00 Put 31.19 -1.61% 30.65 33.00 103 304 07/24/20 33.91% *** *** Call 23.65 - 1.21% 22.25 23.70 170 905 07/24/20 33.91% 380.00 Put 34.40 -0.03% 31.50 35.35 43 999 07/24/20 33.91% *** *** Call 21.00 -4.76% 19.75 22.20 296 667 07/24/20 33.91% 385.00 Put 38.96 +6.89% 34.35 38.60 28 214 *** *** Call 18.95 -4.92% 18.30 21.40 136 3,700 07/24/20 33.91% 390.00 Put 41.75 +18.68% 37.40 41.20 2 166 *** *** Call 15.50 -12.82% 15.65 19.50 33 602 Put 45.44 +20.37% 40.50 44.70 1 139 07/24/20 33.91% 07/24/20 33.91% 07/24/20 33.91% 07/24/20 33.91% 07/20/20 33.91% 07/24/20 33.91% 395.00 07/24/20 33.91% 400.00 *** *** Call 15.65 -3.51% 14.75 15.80 363 1,547 Put 46.09 -0.65% 43.60 48.00 64 544 *** ... Call 13.50 - 1.24% 13.15 16.15 43 941 07/24/20 33.91% 405.00 Put 38.35 -7.81% 47.20 51.55 6 62 *** *** Call 11.81 -10.46% 11.75 14.80 59 1,197 07/24/20 33.91% 410.00 Put 53.13 +30.57% 50.70 54.90 15 209 07/24/20 33.91% *** *** Call 11.35 -2.99% 9.75 13.50 95 752 07/24/20 33.91% 415.00 Put 45.50 -24.72% 54.50 58.80 2 15 07/23/20 33.91% *** : Call 9.53 -10.52% 9.30 12.00 117 749 07/24/20 33.91% 420.00 Put 52.53 +6.68% 58.20 62.70 1 26 07/23/20 33.91% *** Put Volume Total 2,263 12,982 Call Volume Total 2,054 Put Open Interest Total Call Open Interest Total Put/Call Open Interest Ratio 18,013 Put/Call Volume Ratio 1.10 0.72 Break Even point Max Profit Max Loss Strike @ $ xx.xx Call Buyer Call Seller Break Even point Max Profit Max Loss Strike @ $ xx.xx Put Buyer Put Seller Activision Blizzard (ATVI) 79.99 +0.38 (+0.48%) 07/24/20 (NASDAQ] OPTIONS PRICES for Fri, Jul 24th, 2020 Expiration: 2020-11-20 (m) Near-the-Money Side-by-Side download 119 Days to expiration on 2020-11-20 Implied Volatility: 38.77% Calls Puts Links Type Last %Chg Bid Ask Volume Open Int Type Last %Chg Bid Ask Volume Open Int Last Trade Avg IV Links Last Trade Avg IV Strike 07/10/20 38.77% 55.00 Call 27.01 +7.18% 23.85 27.40 10 68 Put 0.83 +6.41% 0.78 1.17 2 173 07/24/20 38.77% *** Call 22.88 +9.47% 21.55 24.00 3 27 07/07/20 38.77% 57.50 Put 0.97 -14.16% 0.98 1.60 500 723 07/21/20 38.77% : Call 20.60 -12.38% 20.50 22.90 1 229 07/24/20 38.77% 60.00 Put 1.37 +8.73% 0.40 2.73 7 867 07/24/20 38.77% Call 19.54 -5.28% 17.05 20.65 1 37 07/20/20 38.77% 62,50 Put 1.56 +3.31% 1.21 3.25 103 565 07/22/20 38.77% : Call 17.80 -4.81% 16.50 18.75 4 133 07/22/20 38.77% 65.00 Put 2.13 +12.11% 1.58 2.49 53 951 07/24/20 38.77% . Call 17.00 +16.52% 14.40 16.40 1 119 07/23/20 38.77% 67.50 Put 2.65 +10.88% 1.70 2.95 1 382 07/23/20 38.77% : Call 13.57 -9.53% 13.10 14.85 8 466 07/24/20 38.77% 70.00 Put 3.35 +13,56% 3.10 3.30 38 1,040 07/24/20 38.77% Call 11.44 -4.83% 10.55 12.35 49 265 07/23/20 38.77% 72.50 Put 3.45 -11.54% 3.15 4.15 10 297 07/23/20 38.77% Call 9.71 -0.41% 8.95 10.20 31 472 07/24/20 38.77% 75.00 Put 5.15 +30.71% 4.10 4.95 24 223 07/24/20 38.77% Call 8.65 +5.88% 8.10 8.65 1 201 07/24/20 38.77% 77.50 Put 4.75 -12.04% 5.20 6.50 42 107 07/23/20 38.77% Call 6.95 +2.21% 6.90 7.30 73 7,499 07/24/20 38.77% 80.00 Put 5.80 -8.66% 6.40 7.30 9 201 07/23/20 38.77% .. Call 5.85 +1.74% 5.75 6.00 3 186 07/24/20 38.77% 82.50 Put 8.90 +11.95% 8.05 8.50 23 153 07/24/20 38.77% Call 4.70 +2.17% 4.75 4.95 55 819 Put 8.90 -1.66% 9.35 10.00 45 70 07/23/20 38.77% : 07/24/20 38.77% 85.00 07/24/20 38.77% 87.50 *** Call 4.10 -15.46% 3.65 4.60 4 30 Put 12.35 +7.39% 10.65 11.95 35 36 07/14/20 38.77% Call 3.30 +3.12% 3.05 3.90 28 567 07/24/20 38.77% 90.00 Put 14.55 -18.07% 12.90 13.75 6 19 07/16/20 38.77% *** Call 2.16 +5.37% 2.06 3.00 25 116 07/24/20 38.77% 95.00 Put 0.00 unch 15.35 19.20 0 0 N/A 38.77% *** Call 1.15 -11.54% 0.75 1.80 3 302 07/24/20 38.77% 100.00 Put 20.31 -5.36% 20.60 22.40 1 4 07/10/20 38.77% ... Call 0.69 -37.27% 0.22 1.37 10 280 07/23/20 38.77% 105.00 Put 0.00 unch 24.30 27.00 0 0 N/A 38.77% : Call 0.69 -14.81% 0.50 0.90 12 116 07/24/20 38.77% 110.00 Put 0.00 unch 28.90 32.75 0 0 N/A 38.77% ... Call 0.45 -6.25% 0.08 1.14 42 29 07/24/20 38.77% 115.00 Put 0.00 unch 33.55 37.50 0 0 N/A 38.77% Call 0.34 -15.00% 0.30 0.47 8 155 07/24/20 38.77% 120.00 Put 0.00 unch 38.65 42.40 0 0 N/A 38.77% .. 119 Days to expiration on 2020-11-20 Implied Volatility: 33.91% Calls Puts Links Type Last %Chg Bid Ask Volume Open Int Last Trade Avg IV Strike Type Last %Chg Bid Ask Volume Open Int Last Trade Avg IV Links * Call 57.20 +0.14% 55.00 59.35 9 466 07/24/20 33.91% 325.00 Put 12.80 -1.99% 11.10 12.80 219 2,229 07/24/20 33.91% *** *** Call 53.72 +0.41% 51.50 55.55 4 455 07/24/20 33.91% 330.00 Put 14.04 -2.02% 11.60 14.40 151 841 07/24/20 33.91% *** *** Call 43.53 -15.72% 47.65 52.15 1 386 07/24/20 33.91% 335.00 Put 15.60 -1.89% 12.95 15.80 195 404 07/24/20 33.91% : Call 43,44 -7.75% 44.00 48.05 2 472 07/24/20 33.91% 340.00 Put 17.01 -0.41% 14.45 16.90 434 1,923 07/24/20 33.91% *** : : Call 40.95 -5.38% 40.70 44.85 6 851 07/24/20 33.91% 345.00 Put 19.10 unch 16.00 18.90 24 598 07/24/20 33.91% : 1 Call 39.49 -2.73% 37.80 41.60 12 1,329 07/24/20 33.91% 350.00 Put 19.87 -3.07% 17.85 20.45 121 1,362 07/24/20 33.91% *** *** Call 35.48 -4.11% 36.00 38.85 7 276 Put 22.10 -2.43% 19.80 22.55 22 256 07/24/20 33.91% 1 07/24/20 33.91% 355.00 07/24/20 33.91% 360.00 Call 33.50 -3.18% 31.55 36.00 61 699 Put 24.48 -3.62% 22.00 24.65 720 729 07/24/20 33.91% *** Call 30.35 -2.10% 30.35 33.15 95 461 Put 26.35 -3.62% 23.85 26.60 57 696 07/24/20 33.91% : 07/24/20 33.91% 365.00 07/24/20 33.91% 370.00 *** Call 28.00 -3.68% 27.30 30.30 138 1,099 Put 29.15 -0.34% 26,30 29.00 55 1,266 07/24/20 33.91% *** *** Call 26.10 -1.69% 24.20 27.95 407 459 07/24/20 33.91% 375.00 Put 31.19 -1.61% 30.65 33.00 103 304 07/24/20 33.91% *** *** Call 23.65 - 1.21% 22.25 23.70 170 905 07/24/20 33.91% 380.00 Put 34.40 -0.03% 31.50 35.35 43 999 07/24/20 33.91% *** *** Call 21.00 -4.76% 19.75 22.20 296 667 07/24/20 33.91% 385.00 Put 38.96 +6.89% 34.35 38.60 28 214 *** *** Call 18.95 -4.92% 18.30 21.40 136 3,700 07/24/20 33.91% 390.00 Put 41.75 +18.68% 37.40 41.20 2 166 *** *** Call 15.50 -12.82% 15.65 19.50 33 602 Put 45.44 +20.37% 40.50 44.70 1 139 07/24/20 33.91% 07/24/20 33.91% 07/24/20 33.91% 07/24/20 33.91% 07/20/20 33.91% 07/24/20 33.91% 395.00 07/24/20 33.91% 400.00 *** *** Call 15.65 -3.51% 14.75 15.80 363 1,547 Put 46.09 -0.65% 43.60 48.00 64 544 *** ... Call 13.50 - 1.24% 13.15 16.15 43 941 07/24/20 33.91% 405.00 Put 38.35 -7.81% 47.20 51.55 6 62 *** *** Call 11.81 -10.46% 11.75 14.80 59 1,197 07/24/20 33.91% 410.00 Put 53.13 +30.57% 50.70 54.90 15 209 07/24/20 33.91% *** *** Call 11.35 -2.99% 9.75 13.50 95 752 07/24/20 33.91% 415.00 Put 45.50 -24.72% 54.50 58.80 2 15 07/23/20 33.91% *** : Call 9.53 -10.52% 9.30 12.00 117 749 07/24/20 33.91% 420.00 Put 52.53 +6.68% 58.20 62.70 1 26 07/23/20 33.91% *** Put Volume Total 2,263 12,982 Call Volume Total 2,054 Put Open Interest Total Call Open Interest Total Put/Call Open Interest Ratio 18,013 Put/Call Volume Ratio 1.10 0.72
