normandysr2
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I was wondering if someone can verify whether I got my equations right because spread bet options seem to be rather different to normal american style options:
Premium required for Buying an Option regardless whether its a Call or Put=
latest quoted ask price x trade size
Profit/Loss if an Option is bought regardless whether its a Call or Put =
(latest quoted sell price - ask price bought at) x trade size
Premium required for Buying an Option regardless whether its a Call or Put =
latest underlying instrument price x margin factor x trade size
Profit/Loss if an Option is shorted regardless whether its a Call or Put=
(sell price bought at - latest quoted ask price) x trade size
What really confuses me is the Profit/Loss for selling options. It should be the premium received but apparently you have to sell to close the option at the latest quoted sell price to profit.
Premium required for Buying an Option regardless whether its a Call or Put=
latest quoted ask price x trade size
Profit/Loss if an Option is bought regardless whether its a Call or Put =
(latest quoted sell price - ask price bought at) x trade size
Premium required for Buying an Option regardless whether its a Call or Put =
latest underlying instrument price x margin factor x trade size
Profit/Loss if an Option is shorted regardless whether its a Call or Put=
(sell price bought at - latest quoted ask price) x trade size
What really confuses me is the Profit/Loss for selling options. It should be the premium received but apparently you have to sell to close the option at the latest quoted sell price to profit.
