Thank you for that clarification... yes you are correct, the $132 is the income generated in this trade.
--- In ConservativeOptionStrategies@yahoogroups.com, Tom Clark <tec@...> wrote:
>
> You have the Total Profit if stock is between $67.50 & $62.50
> wrong. Your are left holding the stock but at a loss. Total
> Profit/Loss could be anywhere between +120 & -380. Income from the
> trade is 132.
>
> At 02:17 PM 5/12/2010, you wrote:
> >Stock: CAT
> >Price: $67.62
> >SELL 1 MAY $67.50 CALL @ $1.68
> >BUY 1 MAY $62.50 PUT @ $0.36
> >
> >Total Investment: $6630
> >Maximum Profit (if stock is above $67.50 on May Expiration next week): $120
> >Maximum Loss (if stock is below $62.50 on May Expiration next week): -$380
> >Total Profit if stock is between $67.50 & $62.50 on May Expiration
> >next week: $132
>
>
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