You are correct that $5 is an outside bet.
actually the odds of it getting below 6.50 by 17 Sept are 250 to one based purely on 27% volatility.
Theoretically if I am correct with my $5 call I don't need to put up the house to make $1000000....$400 of $6 Sept puts would do the job. In actual fact I don't think they are available at that strike so we will just have to pyramid the trade along the way.
So to conclude
With the right strategy I can make a million bucks off say a grand's worth of options if I am right.... BUT it's a 250 to 1 chance that it will get to 6.50 in September ( my calculator won't do the $5) so I'm maybe not gonna get my mill.
However if you go back to 18/5/2001 the odds of BIL falling to $9 were over 300 to 1 and it did it!
This was quite an interesting exercise!!!!!!!
- Forums
- ASX - By Stock
- BIL Chook back in short
BIL
brambles industries limited
You are correct that $5 is an outside bet.actually the odds of...
Featured News
Add BIL (ASX) to my watchlist
Currently unlisted public company.
The Watchlist
FHE
FRONTIER ENERGY LIMITED
Adam Kiley, CEO
Adam Kiley
CEO
SPONSORED BY The Market Online