bullishTrader (version 1.0.1)

aLongStock: Calculates Profit and Loss (PnL) per share (or unit of the underlying) and Breakeven point of a long position in a stock, at the time of sale of the held stock, and draws its graph in the Plots tab.

Description

Long stock is owning and holding the stock on the expectation that its price will rise (Hull, 2022).

Usage

aLongStock(
  ST,
  S0,
  C = 0,
  hl = 0,
  hu = 1.8,
  xlab = "Spot Price ($) on Expiration",
  ylab = "Realized Profit / Loss [ PnL ] upon Sale ($)",
  main = "Long Stock ",
  sub = "bullishTrader / MaheshP Kumar"
)

Value

returns a profit and loss graph of Covered Call.

Arguments

ST

Spot Price at time T.

S0

Initial Stock Price

C

Transaction Cost.

hl

lower bound value for setting lower limit of X axis displaying spot price.

hu

upper bound value for setting upper limit of X axis displaying spot price.

xlab

X axis label.

ylab

Y axis label.

main

Title of the Graph.

sub

Subtitle of the Graph.

Author

MaheshP Kumar,

Details

This method is developed, and the given examples are created, to compute per share Profit and Loss at the time of the sale of a held stock and also the Breakeven (BE) point for a long stock position and draws its graph in the Plots tab.

References

Hull, J. C. (2022). Options, Futures, and Other Derivatives (11th ed.). Pearson Education (US). https://bookshelf.vitalsource.com/books/9780136940043.

Examples

aLongStock(20,18)
aLongStock(90,85,hl=0.7,hu=1.2)
aLongStock(1000,990,hl=0.97,hu=1.02)
aLongStock(1000,990,5,hl=0.97,hu=1.02)