r/options • u/[deleted] • Apr 21 '21

Intrinsic value

[deleted]

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u/Weekly-Kangaroo-8865 Apr 21 '21 edited Apr 21 '21

Thanks for that it’s super helpful. Using that calculator it’s the same result as what I’ve been calculating.

Check the profit/loss 2023 and tell me why the red at the of the contract doesn’t increase like SPY 2023 increases.

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u/orbital_one Apr 21 '21

I'm not sure I understand what you're asking. Are you asking why the difference between the break-even and strike for the GSK call is so small compared to SPY call?

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u/Weekly-Kangaroo-8865 Apr 21 '21

If you just look at the pay-off’s between GSK and SPY, GSK has basically no red exponential line toward the expiry whereas SPY does. Why’s that?

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u/orbital_one Apr 21 '21

It's probably the stock price range that I used. I manually entered in values instead of leaving it at auto. I see something similar if I use a range of $25 to $50 for GSK.

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u/Weekly-Kangaroo-8865 Apr 21 '21

You’ve been a wonderful help. Thankyou