NWS - Close Out
The Trade (22nd June 2007)
Buy May $29.5 Puts @ $1.525
Sell May $29.0 Puts @ $1.03
Share/Contract = 500
It cost me $0.495 * 28 Contracts = $6,930
- Initially I received $1,350.0
- It cost me $3,900 to close the trade
- I rolled out and received $3,710.0
- Now i’m closing out for $6,930
This ended up being a donation of $5,770 (before brokerage)
After Brokerage this trade donated $6,712.17
I choose not to roll this position today, even though NWS is trading at its support levels and should bounce back. I am currently cautious of the All Ords as it is forming a potential double top pattern. Seems to be some resistance around 6,400 points.
Anyways, interesting to see how this strategy works… This strategy is better in a bullish/neutral market (preferably bullish) this way your written puts will always expire and you will make 20-30% return easily per month. If one of your position doesn’t perform good, you could potentially wipe out the profits for the month. i.e. no cashflow for the month. Will update on my wealth dynamic profile and how I may need to modify my strategy to get myself more into my flow
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