A comparison of different Option prices in relation to the mother stock.
In this case RedHat or RHT
How does the increase of about $7.50 on the mother stock affect the May40 and May45 call option ?
RHT rises from $40 to about $47.50
Stock ____MAY 40__MAY45
$40.00____$1.50_____$0.70
$47.50____$8.00_____$3.60
On a $1000 budget;
__________6 contracts___ 14Contracts
_____Profit_$3,900______$4060
MAY Strike 40 CALL
MAY Strike 45 CALL
This blog is a journal of charts on ASX stocks in various point in time. You might find charts on Major forex pairs,Nasdaq and SGX stocks as well.It reflects the author personal view. Its neither advisory or invitation to trade. All done in the interest and passion for the market, trading, technical analysis and elliot wave. And to exchange view, opinions with traders worldwide. .
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