put.spread: Bull/Bear Put Spread Strategy Function

In roptions: Option Strategies and Valuation

Description

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

Usage

put.spread(k1, k2, long_put, short_put, llimit = 20, ulimit = 20)

Arguments

k1	Excercise Price of Long Put Option
k2	Excercise Price of Short Put Option
long_put	Premium of Long Put Option
short_put	Premium of Short Put Option
llimit	Lower limit of stock price at Expiration., Default: 20
ulimit	Upper Limit of Stock Price at Expiration, Default: 20

Details

The strategy uses two put options to form a range consisting of a high strike price and a low strike price.

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.

Examples

put.spread(1.2, 3.2, 100, 105)

roptions documentation built on July 8, 2020, 7:30 p.m.