Sunday, May 15, 2011

Comparing of different Option Prices on RHT

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

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