yet, my short (put CBA3V7) purchased at $6.2 on the 18/12
are now at $ 9.78 '
3 sessions later..not sure what it means but a bit unexpected...not that I complain
Yes, sorry for the linguaSorry what? Short puts are sold, long puts are purchased... am guessing you did the latter, as your previous posts seem to suggest you're bearish CBA?
It's not $9.78 now, it *was* $9.78 when the last person traded it. Looks like the underlying was about $153 at the time, giving an IV of about 21 (assuming that they traded at the mid, and that next year's Feb div will be the same as this year's). At the closing price of $154.68, a 21 IV gives a theoretical price of $8.80 or so (although IVs generally tend to drop when the broader market goes up so that might be a bit overpriced). Still a tidy gain for you so far though, if you are in fact long those puts at $6.20.
Your strike price for that option is at $156,Yes, sorry for the lingua
i am long these puts as i expect cba to fall on the medium to long term from current crazy PE.
My understanding indeed, plus costs/feesYour strike price for that option is at $156,
breakeven point is at (156-6.2= 149.8).
Is that correct?
Obviously, there is an insurance premium, so even with SP at $149/$150 the option will still have some extra value , decreasing until expiryMy understanding indeed, plus costs/fees
Not at all,i just ordered and got 3 last weekTook a look at those options for curiosity's sake, seems I wasn't too far off on my estimate, with the stock barely moved from last close the MMs were showing 8.14/9.04 for a 8.59 mid, as expected IV did back off a bit after the mini rally since yest midday.
Also noticed that the open interest is 2524 contracts... all of them yours I take it qldfrog? That is one massive bearish bet!
Yes, for frog to recover the $6.20 he spent, the CBA shares have to have dropped to $149.80 by mid June.Your strike price for that option is at $156,
breakeven point is at (156-6.2= 149.8).
Is that correct?
And did i mention the fees/brokerage....
I have given up on options in the asx market .
I use bell direct, nearly $50 fees for $1.5k purchase...You're not using IB? In IB that trade would've cost $2.50 of brokerage, and that's only because of the minimum, above the minimum it would be 61.6c per contract (including GST) as CBA counts as tier 5.
I think you are right in your belief that CBA is over valued, they only part in your strategy that worries me a bit, is that you are paying out money while you wait for that price to correct. Prices can stay out of wack for long periods sometimes. So I prefer positions where I get paid to wait for corrections, rather than me paying to wait.Obviously, there is an insurance premium, so even with SP at $149/$150 the option will still have some extra value , decreasing until expiry
Btw following various discussions about shorting CBA
i managed to get a put on cba for July at $156 paid 6.30 after fees etc
That was earlier this week when cba was at ath.
Currently around 151 so not far from being in the money.
Time will tell.
Just bought 3 of these so not gambling the house there: going against @peter2 is a near sure way to lose
@qldfrog If b*lls are the size of coconuts then .......................Put a sell order at $9.75 today as i was on the broker site, which got executed..
3 CBA3V7 sold for $2893.98 after all costs, i wa buying these 3 on the 18/12 for a total cost of $1891.02 so $1k profit, 53% gain in less than a month, yet CBA is still at $153 a pop so not exactly smashed
I am surprised
Should probably reinvest this $1k on a similar trade with same vision.
The power..and risks... of options...
Now how big are my ... As we know, the power of passive investing is monstrous on CBA.
Are they already up for sale again at $10.20 x200 or is that another lot?Put a sell order at $9.75 today as i was on the broker site, which got executed..
3 CBA3V7 sold for $2893.98 after all costs, i wa buying these 3 on the 18/12 for a total cost of $1891.02 so $1k profit, 53% gain in less than a month, yet CBA is still at $153 a pop so not exactly smashed
I am surprised
Should probably reinvest this $1k on a similar trade with same vision.
The power..and risks... of options...
Now how big are my ... As we know, the power of passive investing is monstrous on CBA.
Not sure, can not see easily unless i am on the PC. Will try to keep an eyeAre they already up for sale again at $10.20 x200 or is that another lot?
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