tailieunhanh - Annuities and Other Retirement Products: Designing the Payout Phase (Directions in Development)_7

Tham khảo tài liệu 'annuities and other retirement products: designing the payout phase (directions in development)_7', tài chính - ngân hàng, ngân hàng - tín dụng phục vụ nhu cầu học tập, nghiên cứu và làm việc hiệu quả | 13 Butterflies and condors combining call spreads and put spreads 145 Table Marks and Spencer long April 320-330-340-350 put condor M S Spread debit - Value of long 350-340 put spread at expiry 10 .00 Value of short 330-320 put spread at expiration Profit loss Figure Expiration profit loss relating to Table Long at-the-money put condor For stationary markets Put condors like call condors can be placed at many different strikes depending on your near-term outlook for the underlying. If your outlook calls for a stationary market but you wish to leave room for error on the downside you can substitute the long at-the-money put condor for the at-the-money put butterfly. You might for example buy the above April 360-350-340-330 put condor for a debit of The downside profit potential of this spread is Put condors can be placed at many different strikes depending on your near-term outlook for the underlying 146 Part 2 Options spreads the same as the upside profit potential of the long April 340-350-360-370 call condor. The profit loss at expiration is summarised as follows Debit from long April 360 put Debit from long April 330 put Credit from short April 350 put Credit from short April 340 put Total debit Maximum profit difference between highest two strikes minus spread debit 360 - 350 - Range of maximum profit 350 - 340 Upper break-even level highest strike minus spread debit 360 - Lower break-even level lowest strike plus spread debit 330 Profit range - 23 Maximum loss cost of spread The risk return ratio is again favourable at for 1 or 1 . By now you should be an expert at tabulating and graphing the expiration profit loss levels of condors and butterflies. Short .