Using the AMZN option chain, establish a covered call with 2,000 stock shares. Determine the investment...
Using the AMZN option chain, establish a covered call with 2,000 stock shares. Determine the investment and ROI is S1 is $260 in 3 days. Use delta, gamma, and theta.
Homework Answers
Covered call is the position in which investor sells call options and owns an equivalent amount of the underlying security.
SO for 2000 stocks investor needs to sell 2000 call options of AMZN
Invesement = 2000 * Call option premium
Invesement = 2000 * 563
Invesement = $ 1,126,000
Call premium for strike price of $2,600 = $563
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