Options Trading Tutorial

trade001 msft update0106 gif

Summary: goes Update 6th January 2005 MSFT is now trading at $26 75 The price is still within our break even points so it is not a profitable trade yet In other words it has no intrinsic value The $27 call is trading at 0 20 and the $27 put is trading at 0 40 So the market value of our option spread is currently 0 60 We paid 0 75 for it so our unrealized P L is currently a loss

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