Option Charts Short Put Price not Reflected by Asset Price

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

    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,

    short-put-34400.jpg short-put-34400.jpg
    11/24/2021 at 1:21 PM #182215 quote
    JS
    Participant
    Senior

    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).

    11/24/2021 at 6:48 PM #182224 quote
    Bard
    Participant
    Master

    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 😄.

    JS thanked this post
    12/02/2021 at 4:29 PM #182733 quote
    Bard
    Participant
    Master

    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.

    option-price.jpg option-price.jpg
    12/02/2021 at 5:35 PM #182742 quote
    JS
    Participant
    Senior

    Hi @Bard

    I see a graph of a Long Put not a Short Put 🙂
    Bard thanked this post
    12/02/2021 at 6:08 PM #182743 quote
    JS
    Participant
    Senior

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

    ongedekt-put-opties-schrijven.png ongedekt-put-opties-schrijven.png
    12/02/2021 at 9:00 PM #182751 quote
    Bard
    Participant
    Master

    Hi @JS,

    My picture shows it set to short though?

    12/02/2021 at 9:25 PM #182753 quote
    JS
    Participant
    Senior

    Hi @Bard,

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

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Option Charts Short Put Price not Reflected by Asset Price


Platform Support: Charts, Data & Broker Setup

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Bard @brad Participant
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This topic contains 7 replies,
has 2 voices, and was last updated by JS
4 years, 2 months ago.

Topic Details
Forum: Platform Support: Charts, Data & Broker Setup
Language: English
Started: 11/24/2021
Status: Active
Attachments: 3 files
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