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0 pointskasey_junk10y ago0 comments

$7 is the option price. The interest in your earlier example.

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ZenoArrow10y ago· 2 in thread

Ah, thanks kasey_junk.

Okay, so I thought I knew enough to work the NFLX example, but I still came up with some mistakes. Unexpected values shown in blue here:

I've probably made a fundamental error, what am I missing?

Don't execute on out of the money options. IE you eat the $700 in fees but you don't actually trade the underlying stocks they represent.

Oh, so you can just pay the fees, cancel the put option, and keep the stock you bought at the beginning of the process?

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