Call Payoff Diagram발음듣기
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Call Payoff Diagram
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출처 : 칸아카데미
Call Payoff Diagram
Payoff diagrams are a way of depicting what option or set of options or options combined with other securities are worth at option expiration.
What you do is plot it based on the value on the underlying stock price, and I have two different plots here.
One that you might see more in an academic setting or a textbook, and one that you might see more if you look up payoff diagrams on the internet people actually trading options.
But they're very similar; this one just worries about the actual value of the options at expirations and this worries about the profit and loss.
So this one will incorporate what you paid for the option, this will not.
This just says what it is worth.
With that said, we have company ABCD trading at $50 per share.
And then we have a call option with a $50 strike price, or $50 exercise price, trading at $10.
Which tells us that the owner of that option has the right but not the obligation to buy Company ABCD stock at $50 per share up to expiration, assuming it's an American option.
If it was a European option, it would be on expiration.
So what is the value of this option at expiration? So this is value at expiration.
So if the stock is worth less than $50, the owner wouldn't execute it.
They wouldn't exercise the option.
So the option would be worthless.
It would be worthless.
They would just let it expire.
No reason to actually exercise the option.
Now, if the underlying stock price is worth more than the $50, if its $51 then you would exercise it,
because now the option is worth $1. You can buy something for $50 and now sell it for $51.
So its now worth $1. If the underlying stock price is $60, of course you would exercise it [as] its now worth $10.
Because you can buy something for $50 and you can immediately sell it at $60.
We're saying that the underlying stock price is $60, so it would be worth $10.
And so you have a payoff diagram that looks something like this: a kind of hockey sticks.
Below $50 its worthless, and then above $50 all of a sudden it becomes worth something.
Now if you do it in the profit and loss model all you have to do is incorporate what you actually paid for the option.
So in this situation below $50 you still would not actually exercise your option because why would you pay $50 for something that is actually trading for less than $50?
But you would say "Hey, I would have had to take a $10 loss because I paid $10 for that option"
So up until $50 your profit is -$10, you have lost $10 dollars, you have lost the price of the option.
Because you wouldn't exercise it.
Then all of a sudden the stock price goes above $50 you would exercise it but you would still have a negative profit because you still haven't made up the price of the option.
All the way up until $60, at $60 per share for the underlying stock price you could exercise the option:
buy the stock at $50, sell it at $60, you would make $10 doing that but of course you had to spend $10 on the option so there you would break even.
But then as you get above a $60 stock price at majority, then all of a sudden you start to make money.
So these are both legitimate payoff diagrams for a call option, for this call option right over here.
They're just different ways of viewing it.
This is the value of the options, this incorporates the actual cost of it.
번역
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Payoff diagrams are a way of depicting what option or set of options or options combined with other securities are worth at option expiration.발음듣기
대기중
What you do is plot it based on the value on the underlying stock price, and I have two different plots here.발음듣기
대기중
One that you might see more in an academic setting or a textbook, and one that you might see more if you look up payoff diagrams on the internet people actually trading options.발음듣기
대기중
But they're very similar; this one just worries about the actual value of the options at expirations and this worries about the profit and loss.발음듣기
대기중
And then we have a call option with a $50 strike price, or $50 exercise price, trading at $10.발음듣기
대기중
Which tells us that the owner of that option has the right but not the obligation to buy Company ABCD stock at $50 per share up to expiration, assuming it's an American option.발음듣기
대기중
Now, if the underlying stock price is worth more than the $50, if its $51 then you would exercise it,발음듣기
대기중
So its now worth $1. If the underlying stock price is $60, of course you would exercise it [as] its now worth $10.발음듣기
대기중
Now if you do it in the profit and loss model all you have to do is incorporate what you actually paid for the option.발음듣기
대기중
So in this situation below $50 you still would not actually exercise your option because why would you pay $50 for something that is actually trading for less than $50?발음듣기
대기중
But you would say "Hey, I would have had to take a $10 loss because I paid $10 for that option"발음듣기
대기중
So up until $50 your profit is -$10, you have lost $10 dollars, you have lost the price of the option.발음듣기
대기중
Then all of a sudden the stock price goes above $50 you would exercise it but you would still have a negative profit because you still haven't made up the price of the option.발음듣기
대기중
All the way up until $60, at $60 per share for the underlying stock price you could exercise the option:발음듣기
대기중
buy the stock at $50, sell it at $60, you would make $10 doing that but of course you had to spend $10 on the option so there you would break even.발음듣기
대기중
But then as you get above a $60 stock price at majority, then all of a sudden you start to make money.발음듣기
대기중
So these are both legitimate payoff diagrams for a call option, for this call option right over here.발음듣기
대기중
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