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Old 04-04-2006, 08:32 PM
Sniper Sniper is offline
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Join Date: Jun 2005
Location: Finance Forum
Posts: 12,364
Default Re: The details of my Big Bet against Krispy Kreme

[ QUOTE ]
no 2+2ers buy any donuts for the next year.

edit: anybody mind explaining one of these lines a little bit, how you figured the cost and how to figure the gain and loss with different outcomes.

[/ QUOTE ]

Each option contract represents 100 shares, the cost is per share equivalent, so multiply the cost of the option by 100, then multiply by the # of contracts, to get the total cost.

Example...
100 YRDMZ ($2.50 Jan 08) bought at 45 cents, cost $4,500
100 contracts * $0.45 * 100 shares = $4,500
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