Ok so here is what we’re looking at:
Dec 145 Put 4.70 x 5.05 — Mid: 4.87
Jan 145 Put 6.50 x 6.95 — Mid: 6.72
Price: 1.85
Dec 140 Put 2.66 x 2.90 — Mid: 2.78
Jan 140 Put 4.45 x 4.80 — Mid: 4.63
Price: 1.85
So with an initial buy of 1.50 and 1.30
And both sets of options running 1.85
We’re looking at a gain of about 30%.
Time to ring the register:
| IWO Premium Order Ticket | |||||
| Type | Asset | Duration | Strike | C/P | |
|---|---|---|---|---|---|
| STC | UNH | 20 Jan 17 | 140 | Put | |
| BTC | UNH | 16 Dec 16 | 140 | Put | |
| Total Credit: | 1.85 | ||||
| IWO Premium Order Ticket | ||||
| Type | Asset | Duration | Strike | C/P |
|---|---|---|---|---|
| STC | UNH | 20 Jan 17 | 140 | Put |
| BTC | UNH | 16 Dec 16 | 140 | Put |
| Total Credit: | 1.85 | |||
There’s nothing wrong with walking the spreads down to about 1.80
