The Boston Strangle - from SFO mag

There is an interesting article in the Dec 06 edition of the SFO Mag on something called The Boston Strangle. Subscription is free.

I read the article initially and was graphing out the strangle playing with the numbers.
short 10x XEO 560 calls debit 15.6 each
short 10x XEO 580 puts debit 11.9 each

For more details and reasonings behind The Boston Strangle, you will have to subscribe and read the article ;-)

What I discovered was a discrepancy of the P/L if XEO expired at 558.8. The published P/L, $5380, and what's shown on my graph did not jive (I used thinkorswim). Not satisfied at such seemingly simple math, I graphed using Hoadley. TOS and Hoadley both showed $6300 profit.

A much more alert reader, Tom Opiela (photoman), pointed out where the problem is. A picture beats a thousand words. Click on pic to see full version.