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SHORT SPREAD BETTING INDICES OPTIONS


Guest zds25

Question

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Can someone tell me how to predict losses if you are shorting options on the indices.

So yesterday  I had a demo DAX trade as follows:-

Short Call Germany 30 @12220

stake size -49.75 options open price 20.3 close 48.71 so result up 28.41 points makes loss of 1,413.40 euros. (49.75 x 28.41 Understood).

But how do I calculate from the index?

The market price closed at 12,302.6 at a strike price of 12,220 makes a market move of 82.6 against me. How do I predict losses using the index. Normally with options I would simply deduct the opening premium from the market move (82.6-20.3) = 62.3 and multiply by the stake. - but this does not relate in this case. How can I relate the options price move of 28.41 points to the market move of 82.6 points from the strike price? Hope this makes sense.

can you assist?

thanks

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