roptions (version 1.0.3)

call.spread: Bull/Bear Call Spread Strategy Function

Description

This function can be used to develop a Bull/Bear Call Strategy.

Usage

call.spread(k1, k2, c1, c2, llimit = 20, ulimit = 20)

Arguments

k1

Excercise Price of Long call Option

k2

Excercise Price of Short Call Option

c1

Premium of Long call Option

c2

Premium of Short Call Option

llimit

Lower limit of stock price at Expiration., Default: 20

ulimit

Upper Limit of Stock Price at Expiration, Default: 20

Value

OUTPUT_DESCRIPTION Returns the profit/loss generated from the strategy along with the profit/loss of individual contract and an interactive graph for the same.

Details

Bull Call Spread uses two call options to create a range consisting of a lower strike price and an upper strike price.bear call spread is achieved by purchasing call options at a specific strike price while also selling the same number of calls with the same expiration date, but at a lower strike price.

Examples

# NOT RUN {
call.spread(1.2, 3.2, 100, 105)
# }