Friday, May 14, 2010

Closing Recap

I believe I could have gotten more from my C puts if I held them into next week, but it wasn't worth the risk. They expire on May 21.

All numbers are rounded to the nearest percent.

From now on, I'm going to simplify the calculation and just leave out the insignificant brokerage flat fees.

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

I earned a .1275/.0375 - 100% = 240% profit on the C May 2010 4 put

240% / 6 options = 40% Total Net Profit + 59% Total Net Profit from F, BAC, QQQQ, COF, and HD May options = 99% Total Net Profit for May Options

Cumulative effect = 200% of original amount

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