| ABC 50 |
|---|
| |
|---|
| $9.1 |
$3.95 |
$5.8 |
$5.6 |
| $8.84
|
$1.33
|
$7.14
|
$4.68
|
| overpriced by $0.26 or 14.70%
|
overpriced by $2.62 or 66.37%
|
underpriced by $1.34 or 23.07%
|
overpriced by $0.92 or 16.46%
|
| |
| 30 days |
30 days |
30 days |
30 days |
| 4 |
4 |
4 |
4 |
| $2.21 |
$-2.79 |
$0.0 |
$0.0 |
| $0.13 |
$0.04 |
$0.09 |
$0.07 |
| $1.08 |
$1.11 |
$0.0 |
$0.0 |
As you go through the TUTORIAL, every row in this table will be explained.
The critical information for traders is above the blue border. Taking the 50call as an example:
The potential high of the stock is $62.94. If the stock reaches that point, the call will make $12.94, of which $5.8 is prepaid premium. The potential profit of the option is therefore 12.94 - 5.8 = $7.14. Because this is greater than the option price, the call is underpriced.
Please CONTINUE for details.
To see stock analysis, click here.
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