Option Charts Short Put Price not Reflected by Asset Price

• 11/24/2021 at 11:08 AM #182195
  Bard

  Hi there, I was wondering if someone could explain to me why when I set an option chart with the Y axis set to Option Price and the X set to Asset Price, I can’t get a 34,400 Short Put (priced 172/212) to show that price. Instead it shows the option priced at 653? Pls see image:

  Thanks for any insights,

  

  Bard

  Participant

  Topics: 138

  Replies: 814

  Been thanked: 99 times
  11/24/2021 at 1:21 PM #182215
  JS

  When calculating the initial option price, you have assumed an underlying price of 35,677.2 (Dow Jones price), at this price your short put has a value of 178.

  In the chart (left side) you have lowered the underlying price to 34,396.7 (difference of 1280 points).

  At this position (34,396.7) your short put has a value of 653.9 (scenario at maturity).

  

  JS

  Participant

  Topics: 26

  Replies: 1712

  Been thanked: 775 times
  11/24/2021 at 6:48 PM #182224
  Bard

  Cheers @JS, I was confusing the Strike with the Underlying.
  Ps// The latest version of the probability calculator is looking good now — I even think the current version has only one error (the third quotes date cell is missing a formula) which is pretty good judging from how erratic Excel has been at saving my latest modifications 😄.

  1 user thanked author for this post.

  JS

  

  Bard

  Participant

  Topics: 138

  Replies: 814

  Been thanked: 99 times
  12/02/2021 at 4:29 PM #182733
  Bard

  Hi @JS,

  I wondered if you could take a look at this image below. According to a PRT Options chart that Dec 17th 34,400 Short Put needs to go about 4,000 points higher (Dow 38,473) for the option price to reach zero?  That can’t be right? I don’t believe I’ve mixed up the Strike with underlying as I did above.

  Cheers
  Bard.

  

  Bard

  Participant

  Topics: 138

  Replies: 814

  Been thanked: 99 times
  12/02/2021 at 5:35 PM #182742
  JS

  Hi @Bard

  I see a graph of a Long Put not a Short Put 🙂

   

  1 user thanked author for this post.

  Bard

  

  JS

  Participant

  Topics: 26

  Replies: 1712

  Been thanked: 775 times
  12/02/2021 at 6:08 PM #182743
  JS

  The graph of a Short Put must look something like the image below…

  

  JS

  Participant

  Topics: 26

  Replies: 1712

  Been thanked: 775 times
  12/02/2021 at 9:00 PM #182751
  Bard

  Hi @JS,

  My picture shows it set to short though?

  

  Bard

  Participant

  Topics: 138

  Replies: 814

  Been thanked: 99 times
  12/02/2021 at 9:25 PM #182753
  JS

  Hi @Bard,

  It seems so…but the graph shows a long put.

  

  JS

  Participant

  Topics: 26

  Replies: 1712

  Been thanked: 775 times
• Author
  Posts