Sell Call

Source: Short Call, pg. 91-94, Fontanills, G., trade options online

Usage: You are Bearish, i.e.., you expect Philip Morris to remain where it is or go lower. You think Implied Volatility is high, you want to receive a high premium to sell the call.

Profits: Stays fixed at premium received, ($325), if MO stays the same or goes lower than 60.0 price in graph. Profit decreases as MO increases until break-even occurs for Mo near 63.25 at expiration.

Losses: Open ended if MO increases above break-even by expiration.

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Quoted profitModel profitQuoted PriceModel price Delta
(Shares)		GammaVegaTheta
$ 175.00 $ 181.15 -1 1/2 -1 7/16 -35.8 -5.9703 $ -7.44 $ 2.56

Statistical Volatility Estimate For Probability Calcs: %

Days From TodayProb of ProfitExpected ProfitOdds of Success
15 84.7% $158.35 6.5 to 1
30 79.6% $137.40 3.0 to 1
Expiration 76.8% $116.81 2.0 to 1

Green is current market conditions
X MO @
Quote = 1 1/2, Model = 1 7/16, Delta = -36, IV = 31.9%, IV_EST = 31.1%, Volume = 830, OI = 10129
Bid = 1 3/8, Ask = 1 5/8,