Closing Recap

With options expiration looming (May 21), I decided to close out all my May positions and move them to June, with the exception of my Citigroup puts. This month's gains are already much better than last. I will hold off on selling C puts until later. It may be a big mistake considering my current gains, but my puts could spike considerably higher if the market tumbles further, which I believe will happen.

All numbers are rounded to the nearest percent

Profit or loss = selling price / (buying price + $0.75 per option contract) - starting principal (100%) - selling commissions ($0.75 per option contract + fees)

I earned a 2.92/1.7175 - 100% = 70% profit on the F May 2010 14 put - selling commissions (1%) = 69% net profit

I earned a 4.05/1.6975 - 100% = 139% profit on the BAC May 2010 20 put - selling commissions (1%) = 138% net profit

I earned a 4.5/1.6475 - 100% = 174% profit on the QQQQ May 2010 50 put - selling commissions (1%) = 173% net profit

I earned a 3.30/3.1575 - 100% = 5% profit on the COF May 2010 45 put - selling commissions (1%) = 4% net profit

I incurred a 1.8/2.4575 - 100% = 27% loss on the HD May 2010 35 put - selling commissions (1%) = 28% net loss

69% + 138% + 173% + 4% - 28% = 356% / 5 options = 71% gain so far

If I break even with C puts, 356% / 6 options = 59% gain

Total Net Profit = 59%

I never compound previous gains from past months; I only add to them. When you play with near-term options, in any given month, you can lose a large percentage of your money.

Cumulative effect = 160% of original amount