Friday, May 21, 2010

Recap Correction

I made a slight error on the previous closing recap.

All numbers are rounded to the nearest percent.

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

Selling price of $0.13 - $0.0075 = $0.1225

Buying price of $0.03 + $0.0075 = $0.0375

I earned a .1225/.0375 - 100% = 227% profit on the C May 2010 4 put

227% / 6 options = 38% Total Net Profit + 59% Total Net Profit from F, BAC, QQQQ, COF, and HD May options = 97% Total Net Profit for May Options

Cumulative effect = 198% of original amount

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