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Shawn P Adamo
Shawn P Adamo, CPA, Professor, CFP. CGMA, Business Consultant, Professor, PFS I have decades of experience answering these questions.
Category: Finance
Satisfied Customers: 2884
Experience:  CPA, Professor, CFP. CGMA, Business Consultant, Professor, PFS I have decades of experience answering these questions.
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What is this trade called? This was from an advisory about a

Customer Question

What is this trade called? This was from an advisory about a month ago. I checked today and there's only about $1.5 difference opening credit between the prices of the two compared to 7 at the time of thus advisory. That's less favorable correct? How would this trade play out if it was made today?
Submitted: 11 months ago.
Category: Finance
Expert:  Andy4712 replied 11 months ago.

What trade? You need to provide more information.

Customer: replied 11 months ago.
on the attachment
Expert:  Andy4712 replied 11 months ago.

I don't know. I will opt out and let another expert answer.

Expert:  Shawn P Adamo replied 11 months ago.

The "play out" depends whether you buy and want to sell later, have it and want to sell now, puts or calls.

Expert:  Shawn P Adamo replied 11 months ago.

Please let me know if you have more questions.

Customer: replied 11 months ago.
Right now the spread is $4. So if closes below 120 in 22 months I'll have to buy brkb at net $116.If it closes betwee 120 and 150 the options will expire worthless and I'll keep the $4.If it closes above 150 I could buy it and then sell it and keep the profit plus the $4. (So if it went to say 170 I'd make $24)If this is all correct is the only way to lose if it trades below $116 in 22 months and I still have to buy it st $116 anyway?