Option Investor

March Option Writer Risk Management

Printer friendly version

ICE - The stock has been volatile lately. I wanted to try showing the estimated price of the stock when the option is at a loss of $190 per contract or 100% of the initial premium. Hopefully this is easy to read. If so, I will send out the screenshot of each position in the portfolio along with the strike, cost basis and technical support levels.

The above chart represents the P/L curve as of today. The vertical lines represent the estimated price that the 125 put will be at a $190 loss per contract, the current price, and the breakeven price, respectively. The particulars of the Delta, Theta, P/L Day and Open are also presented under the Price Slices. I have the ability to plot multiple P/L curves representing various time horizons. But that might be difficult to see from an uploaded image. ICE is bouncing a little from Friday but is way off its intraday high of 137.05.

Option Writers Newsletter Archives