3 ms·
> just a minimum of 10% over the next 2 years. Misleading... Sure breakeven is 10% if you assume all-else-equal. Your path to profitability is path dependent.
by anonu 7y ago
> just a minimum of 10% over the next 2 years.
Misleading... Sure breakeven is 10% if you assume all-else-equal. Your path to profitability is path dependent. If it moved 10% tomorrow, you would probably be hard-pressed to make any money considering spreads and other trading costs. You really need a bigger move to breakeven in a short amount of time.
- FlopV 7y agoCorrect me if I'm wrong but believe he's talking about 2 years out to acctaully purchase the stock ?
- rwmurrayVT 7y agoThat's not correct, nor misleading. The breakeven point would need to be met on the day of expiration. If it shot up 10% tomorrow I would be profitable. I'd still have the value associated with theta less volatility.