Ok, I have decided to not post historical stuff but to try and post with in a day or two of opening a position. (That way what I write will be current!)
So, yesterday I opened this:
Bought 200 shares of YRCW at 4.1799 plus a commission of 4.95 for a total of 840.93.
Sold to open 2 contracts of YUX JG (Oct 4 Call) at 0.75 minus commissions and fees of 6.26 for a total of 143.74.
So:
BOT 200 YRCW for 840.93
STO 2 YUX JG for 143.74
Total = 697.19
Total cost per share = 3.486
At expiration on October 17, assuming YRCW is still above 4 it will close at 795.02 (calculating in a 4.95 commission and estimating a .03 SEC fee.)
Total Gain: 795.02 - 697.19 = 97.83
Percent Gain: 97.83 / 697.19 = 14.032% in 25 days.
Annualized Gain (assuming that this is really a 1 month trade) 14.032% * 12 = 168.4%
Once again I am giving up potential upside (YRCW is trading at 5.47 as I write this) for a high probability of gain! And if YRCW continues it's upward swing, I could very likely close early for a near max gain like I did with EK.
Wednesday, September 23, 2009
Thursday, September 3, 2009
EK (Closed Early)
So EK went deep in the money about two weeks before expiration last month and so I had a decision to make:
Do I hold for my planned gain for another week or two or do I get out now and find a new place for my money?
I decided to close at a near maximum gain.
Here are the numbers:
On 8/13 (Expiration was 8/24)
Sold 400 shares at 4.49. Total value of 1791.00 (4.95 commission and 0.05 SEC fee)
Bought to Close 4 contracts EK HR at 1.52 for a total debit of 615.55 (7.55 commission)
Total at close: 1175.45
You will recall from the earlier post the maximum value at expiration was 1195 (using the SEC fee of 0.05 plus the 4.95 commission.)
So it cost me $20 extra to close 11 days early. Well worth it if I can find another place for the money for those 11 days that will make more that $20. (Where it went will be listed in a new blog post that I should post this weekend.)
In review:
I started by investing 1096.51 to open this position on 7/21.
On 8/13 I closed the position for 1175.45.
Total gain was 1175.45 - 1096.51 = 78.94.
Return for the position = 7.199% in 23 days. (78.94/1096.51)
Annualized return = 114.248% ((7.199% / 23 Days) * 365 Days)
Not to shabby!
Do I hold for my planned gain for another week or two or do I get out now and find a new place for my money?
I decided to close at a near maximum gain.
Here are the numbers:
On 8/13 (Expiration was 8/24)
Sold 400 shares at 4.49. Total value of 1791.00 (4.95 commission and 0.05 SEC fee)
Bought to Close 4 contracts EK HR at 1.52 for a total debit of 615.55 (7.55 commission)
Total at close: 1175.45
You will recall from the earlier post the maximum value at expiration was 1195 (using the SEC fee of 0.05 plus the 4.95 commission.)
So it cost me $20 extra to close 11 days early. Well worth it if I can find another place for the money for those 11 days that will make more that $20. (Where it went will be listed in a new blog post that I should post this weekend.)
In review:
I started by investing 1096.51 to open this position on 7/21.
On 8/13 I closed the position for 1175.45.
Total gain was 1175.45 - 1096.51 = 78.94.
Return for the position = 7.199% in 23 days. (78.94/1096.51)
Annualized return = 114.248% ((7.199% / 23 Days) * 365 Days)
Not to shabby!
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