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Straddle pricing


stock777

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Current logic:

AAPL, Expiration Jan 18 Strike 155.

Call: bid 0.77 ask 0.80

Put: bid 1.43 ask 1.47

Straddle bid: 2.24 ask 2.23 

Straddle bid = call bid + put ask

Straddle ask = call ask + put bid

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You're right, it may be incorrect.

Straddle bid means selling a straddle, which means selling both a call and a put option? It should be call bid + put bid, since that is what you would need to pay to sell both right now.

Conversely, the straddle ask would mean buying the straddle, which would be at ask on both sides.
Is that correct?

 



 

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