roptions (version 1.0.3)

straddle.short: Short Straddle Strategy Function

Description

This function can be used to develop a Short Straddle Strategy.

Usage

straddle.short(c, p, k, ulimit = 10, llimit = 10)

Arguments

c

Premium of Short call Option

p

Premium of Short Put Option

k

Excercise Price of Short call and Put Option

ulimit

Upper Limit of Stock Price at Expiration, Default: 20

llimit

Lower 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

A straddle is a neutral options strategy that involves simultaneously selling both a put option and a call option for the underlying security with the same strike price and the same expiration date.

Examples

# NOT RUN {
straddle.short(1.2, 3.2, 100)
# }