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REDDIT
Call Condor should have hit Max Profit, but option prices not reflecting it?
Hi All
I initiated a Call Condor last week (when AMD was trading around $203) as shown in the screenshot below (+220 -230 -240 +270) and collected a credit of around 20c. I was banking on AMD to rally and it did, trading at around $232 as I am writing this.
Theoretically, my position should have hit Max Profit (also attached a Payoff diagram) of $10 but the options are not pricing this in. As reflected in my screenshot, I actually have to pay $3.75 to exit my position.
There has to be something I have missed here? Any replies would be greatly appreciated!
https://preview.redd.it/bcei975qg0ug1.png?width=2443&format=png&auto=webp&s=035ef17d16506fe5fe4427461233d8403fe4c02a