[ 3 / biz / cgl / ck / diy / fa / ic / jp / lit / sci / vr / vt ] [ index / top / reports ] [ become a patron ] [ status ]
2023-11: Warosu is now out of extended maintenance.

/biz/ - Business & Finance

Search:


View post   

>> No.54571212 [View]
File: 79 KB, 520x932, Capture.png [View same] [iqdb] [saucenao] [google]
54571212

What ratios do you look at when selling call spreads? Pic related is what I may exercise tomorrow for AAPL.

Out of curiosity wouldn't a risk:reward of 4:1 with a 73% of probability mean if this exact was running identify it would basically net return negative? Say I ran this scenario four times, I would profit $150 ($50 x 3) after my first three runs, but the fourth run would get exercised and lose $200 resulting in -$50. Is this correct?

Navigation
View posts[+24][+48][+96]