for those out there that know about options trading:
Am I missing something here? is thinkorswim analyzing this trade wrong? If not whats the catch?
According to this chart my max loss on this trade would be 90 dollars buy my max gains would be like 20 grand????
The expiration date is next friday and its saying I if FB stayed where it is now i would make 8 grand by this friday. Wheres the flaw in this whole thing???
Im a noob at options (obviously), so help would be greatly appreciated
>>1254290
a max loss of $90 would get you $449,910 if you had bet in Leicester to win the Premier League.
There's no way the price of the first call is this low
I've got:
Call option premium for 110 strike and exp date 27th may is $7,85
So for your butterfly, I got cost $902, max reward $898.
I'm not using thinkorswim
>>1254793
how'd you figure that?
>>1254290
Where can I go to learn about these graphs?
I don't understand them in the slightest
>>1254862
YouTube honestly.
"how to read stock charts"
"how to setup option iron condor/butterfly"
look up stuff like that
>>1254862
Basic introductory finance books. Berk and Demarzo is good
>>1254290
price the option with your current variables using Black-Scholes and it should make sense
>>1254290
which program do you use to see graphing like that?
>looking for clean program
>>1254290
OP, I used to work at dough inc on trader support.
You locked your price earlier on the platform and played around with strikes.
Yes that is the value of your trade, but you will never be able to buy that trade for .09.
Click the unlock button and let the analyze tab readjust to the mid value of the whole situation. Everything will look more fair.
Also sometimes ToS counts in your other positions even if they are a quantity of 0. Uncheck your closed FB legs.
>>1254862
This is a Risk Graph. Underlying Price runs along the bottom
Gains and losses are the vertical
