Jump to content
Medved Trader Forums
Sign in to follow this  

Straddle pricing

Recommended Posts

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

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?



Share this post

Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
Sign in to follow this