Question: I need true answer please ? You are extremely bearish on the TresChaud Corporation, which is trading at 127 P/E and is at $484.72 per
I need true answer please ?
You are extremely bearish on the TresChaud Corporation, which is trading at 127 P/E and is at $484.72 per share. You check the option chain and decide to sell a bear call spread and then also buy a put, all expiring in three weeks, as follows: Option/Type Strike BTO STO Qty Price Total TRECF JUN 17 CALL 480 IX -10 $25.80 $25,800 TRECF JUN 17 CALL 490 X 10 $23.75 -$23,750 TRECF JUN 17 PUT 480 1 $20.70 - $2,070 What is your total maximum potential loss? 10,020
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