Jack:
Again, aren't you not accounting for commissions in your profit calculating? Assuming a $1.50 commission rate, you'd have paid $240 in commissions.
40 lots x 4 = 160 options @ $1.50 = $240
Again, aren't you not accounting for commissions in your profit calculating? Assuming a $1.50 commission rate, you'd have paid $240 in commissions.
40 lots x 4 = 160 options @ $1.50 = $240
Now granted yours was still a great trade (but not 88% profit), and had you needed to make adjustments you could have had another $120 in commissions.
This is why I don't personally like calendar trades in stocks under $125. They are fine on trades like yours that completely go your way, but can be dicey when they run into even minor obstacles. For example wasn't your second MCD trade (65 Calendars) hovering on break even?
Leo
From: Jack <jack@jackcpa.com>
To: OptionClub@yahoogroups.com
Sent: Tue, March 2, 2010 6:41:23 PM
Subject: RE: [TheOptionClub.com] Why Did I Lose $$$?
.47/.25 is 88% profit. That was my original trade.
It still looked good, so I bought some 65 calendars – only made 15% on them - in 2 weeks. J
Jack:
These seem like really nice trades, but how is this 80% profit? Especially commissions must have been substantial.
Thanks,
Leo
From: Jack <jack@jackcpa. com>
To: OptionClub@yahoogro ups.com
Sent: Mon, March 1, 2010 9:35:58 PM
Subject: RE: [TheOptionClub. com] Why Did I Lose $$$?
Sure. I did not have time this morning. Had to go to school. L
can you post your trades, Jack? Thanks
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