roptions (version 1.0.3)

strangle.long: Long Strangle Strategy Function

Description

This function can be used to develop a Long Strangle Strategy.

Usage

strangle.long(c, p, k_call, k_put, ulimit = 10, llimit = 10)

Arguments

c

Premium of Long call Option

p

Premium of Long Put Option

k_call

Excercise Price of Long call Option

k_put

Excercise Price of Long 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 strangle is an options strategy where the investor holds a position in both a call and a put option with different strike prices, but with the same expiration date and underlying asset.

Examples

# NOT RUN {
strangle.long(1.2, 3.2, 100, 105)
# }