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if it hits the OW right on the mark then you lose everything + 1% commision to buy
20 call @$2 needs to hit 22 to break even.
20 put @$2 needs to hit 18 to break even.
If the OW is exactly $20, you lose everything + 1% commision.
There are situations where you should buy both, but those come up due to price drift or the derives were set at a "bad" price. But that generalization is inaccurate.
why not buy both OW puts and calls for same movie? Jul 25, 09:35
if it hits the OW right on the mark then you lose everything + 1% commision to buy Jul 25, 09:57
Shorting both would have worked for BATM3, but not recommened (high risk) {nm} Jul 25, 11:21
you are correct in your assumptions, although there is no risk. its not real money. {nm} Jul 25, 10:01
I do that 2.00 dollars each props Jul 25, 10:09
buy both is called a straddle {nm} Jul 25, 12:35
I generally buy both for movies with a projected OW of more than $20/25. Jul 25, 17:16
I used to decide call/short on the last day Jul 25, 20:01
What's the point of playing, if you play like that? {nm} Jul 28, 17:29