p/c parity - pricing an iron fly from fly and others...

[xfon123]

I'm struggling to find any detailed information on put call parity and pricing strategies using it.

I have the basics but for example need some info on how to price a put spread from a call spread, pricing an iron fly from a fly, iron condor from condor etc.

Anybody know of any decent resources? I've checked the regular books but still cat't find much.

Any help would be greatly appreciated.

 

[Pitscum]

I'm struggling to find any detailed information on put call parity and pricing strategies using it.

I have the basics but for example need some info on how to price a put spread from a call spread, pricing an iron fly from a fly, iron condor from condor etc.

Anybody know of any decent resources? I've checked the regular books but still cat't find much.

Any help would be greatly appreciated.

what sort of options? american or european??

 

[Martinghoul]

I'm struggling to find any detailed information on put call parity and pricing strategies using it.

I have the basics but for example need some info on how to price a put spread from a call spread, pricing an iron fly from a fly, iron condor from condor etc.

Anybody know of any decent resources? I've checked the regular books but still cat't find much.

Any help would be greatly appreciated.

For one, let's assume, for simplicity, that all options in question are European, 'cause otherwise put-call parity doesn't have to hold. Ultimately, all you need to do is use the individual put/call prices and the price of the underlying, compute the IVs for each strike and then use those IVs to price calls/puts on the same strikes. Using put-call parity would allow you to streamline the process, in the most obvious way, but again you need to know the individual prices for each leg of the option strategy and for the underlying.

 

[Pitscum]

stop stop stop.......do yourself a flavour xfon, contact the liffe marketing dept, order up (or get from their online section) the options trading strategy guide. also, do yourself a another flavour, buy shelly natenberg's book on trading options. it is the only one you will ever need.

finally, don't buy/sell fly's or iron fly's (same difference) the brokerage will cut you up and you will never get to pay under/fair value..trust me....and im not a broker....