Options Wonderland

[Threeflight]

I dont understand what you are not getting. If he put $1000 into the GOOG August $670 calls at $1.90 or so. that means he bought 5 of them. They are now worth .15 ask, or about $70, so hes -$930.

At the same time he bought the calls if he put $1000 into the GOOG August $470 puts at $8, that means he bought 1.25 of them ( I know he cant but im just using it to keep everything even). They are now at $12 or so, which means he gets back $1500 on those for +$500. So he spent $2000 and at this time has about $1570, or he is -$430.