yonglonglai.com

These are the 4 trades I opened on Monday 22nd October 2007. Took me about 30mins to find and execute these trades, not exactly my best efforts as I was in a rush and only chasing high returns. I only used the screener function on optionsXpress screening for the highest static returns. From there I look for stock codes that I recognised and then looked at the graphs to look for support and resistance.

Here are my stock options trading for November 2007 contracts. If all my positions get assigned/exercised then I am looking to return about 5% (10% margined) in a 30 day period. This equates to 60% (120%) per year, not taking compounding into consideration. Most of my positions that I opened for November are “at the money” hence the higher returns.

The Trade - 22/10/2007
NVDA
Options/Contract = 100
Buy 100 NVDA @ $38.66
Sell 1 NVDA $37.50 Call @ $3.00
Time Value: $1.84
Intrinsic Value: $1.16

Breakeven Point: $35.66
Assigned Return: 4.91% ($1.84/$37.50)
Unassigned Return: 8% ($3.00/$37.50)

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AAPL
Options/Contract = 100
Buy 100 AAPL @ $174.42
Sell 1 AAPL $170.00 Call @ $12.42
Time Value: $8.00
Intrinsic Value: $4.42

Breakeven Point: $162.00
Assigned Return: 4.71% ($8.00/$170.00)
Unassigned Return: 7.31% ($12.42/$170.00)

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RIMM
Options/Contract = 100
Buy 100 RIMM @ $114.13
Sell 1 RIMM $110.00 Call @ $9.06
Time Value: $4.93
Intrinsic Value: $4.13

Breakeven Point: $105.07
Assigned Return: 4.48% ($4.93/$110.00)
Unassigned Return: 8.24% ($9.06/$110.00)

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AMZN
Options/Contract = 100
Buy 100 AMZN @ $90.52
Sell 1 AMZN $90.00 Call @ $6.75
Time Value: $6.23
Intrinsic Value: $0.52

Breakeven Point: $83.77
Assigned Return: 6.92% ($6.23/$90.00)
Unassigned Return: 7.5% ($6.75/$90.00)