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Analysis of S&P 500 fromMichael Kahn with
Brian Overby’s BIIB paper trade strategiesbased on Michael’s analysis:
Brian’s First Paper Trade -
- Net Credit is 1.10 if we get itat the mid, though note this is not always possible
- Maximum potential loss: $3.90
- Maximum potential gain: $1.10
- Total commission to enter thistrade is $6.25
Brian’s Second Paper Trade - ShortCall Spread
- Buy 1 June 5th 2015 BIIB 397.50Call
- Sell 1 June 5th 2015 BIIB395.00 Call
- 3 days to expiration
- Net Bid 0.20 credit, Mid 0.40credit, Ask 0.60 credit for the strategy
- Net Credit is 0.40 if we get itat the mid, though note this is not always possible
- Maximum potential loss: $2.10
- Maximum potential gain: $0.40
- Total commission to enter thistrade is $6.25
**NOTE: option prices are given as a per contract amount. Multiply loss andgain figures by 100 shares and by the number of contracts traded to determinethe amount of the full potential loss or full potential gain. No additionalcalculations are needed to determine commission costs.
TradeKing Options Tools used:
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