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> I don't know where you are getting your prices, but for 8/15/97 I
> have the following settlements...
>
> JYU 85.19
> 88 call .24
> 92 call .04
> 84 put .54
> 80 put .05 (no trades)
>
> The far OTM options are too cheap to be worth selling, IMHO, but
> anyway, a four-way spread strangle (buy 88C, sell 92C, buy 84P, sell
> 80P) has the following characteristics, if we assume a 13%
> volatility, which is what the options currently imply...
>
> Cost $862.50 + 4 commissions
> Break-Even points - about 88.65/83.30 (excluding commissions)
> Probability of profit 53%
> Expected outcome - a $63 profit (minus those commissions)
> Max poss. profit - about $4140
>
> To analyze option strategies you need some software. Take a look at
> http://www.manticsoft.com
> and download the free demo. I find it useful (no other connection).
> Only $89
>
> Bob
Bob,
Thanks for this info. I am just learning and your input has been helpful.
In regards to your question on pricing, I beleive you are looking at the
Sept contract and I was using the December one. I will also check out the
Option software you mention. Does it give you all the information you
listed here such as break even points and profit expectations etc.?
In an earlier post today, you mentioned to someone to use Jack Carls end of
day prices and that it was easy to write a program to parse out the data a
person needs to update their prices in a charting program. Would there be
any chance of you explaining more on how to do this. I have a simple
charting program called Wall Street Analyst but find it takes forever to
get the end of day info into it by using a pricing list like Jack Carl,
Ipstein or even prices from CME or CBOT.
Thanks again for your help
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