This is one of many functions used on MTR Investors Group to calculate option return values.Create FUNCTION [dbo].[f_get_condor_gain_pct]
(
@SellStrike decimal(18,2),
@BuyStrike decimal(18,2),
@PutSellPrice decimal(18,2),
@PutBuyPrice decimal(18,2),
@CallSellPrice decimal(18,2),
@CallBuyPrice decimal(18,2)
)
RETURNS decimal(18,2)
AS
BEGIN
declare @GainAmount decimal(18,2);
declare @SpreadAmount decimal(18,2);
--The Option Sell > Buy - On Strikes the call side is flipped.
set @GainAmount = ((@PutSellPrice - @PutBuyPrice) + (@CallSellPrice - @CallBuyPrice)) * 100 ;
set @SpreadAmount = (@SellStrike - @BuyStrike) * 100;
if (@GainAmount = 0 or @SpreadAmount = 0) return 0;
return (@GainAmount / @SpreadAmount);
END