Am I going to make a 100,000k with my 170 august 5 puts on fed"first federal"?

Question

Am I going to make a 100,000k with my 170 august 5 puts on fed"first federal"?

Answer 1

If you have to ask Yahoo prob not. I think you may profit but you are a bit late to the party, you only have one month for something to decline by near 40%, you will need luck to pull that off, (and thats just for break even)

Answer 2

I think you're a little late to the game. If you went bearish maybe this time last year, especially on the financials, you would be rich. But a lot of these banks have already lost 90% of their market value. For instance, Indymac Bank is trading at around 60 cents now, and it was $40 last summer.

So, I don't know how much more to the downside you're gonna get, but it definitely not looking good at the moment.

Answer 3

You own 170 august 5 puts for FED?  With the price of the underlying at 8.04, you'd need it to drop significantly in the next 46 days in order to make any money.

100000 / (170 * 100) = 5.88, so the price of FED would need to be close to zero (or negative) in order for you to make 100K.

Answer 4

Right now they are out of the money.  So......it's not looking good.

Answer 5

Could you please translate that into UNDERSTANDABLE English........ I DO NOT UNDERSTAND WHAT ---  170 august 5 etc does not make sense...