Stock Options Trading - October US Options Expiry
Hi Everybody, its been a while since a done a complete post. On the 19th October 2007 US Stock Options expired. All my positions were assigned, I didn’t have to to check my position and roll them but it doesn’t matter cause I still made money. On average I made about 3-4% return (6-8% margined) over a 30 day period. If you annualise this it would mean I am making 72% - 96% a year. (that’s without compounding) Its crazy how little risk i’m actually taking to generate this sort of cashflow from the simplest stock options trading strategy
Better not count the chickens before they hatch. Anyways i made enough to from this round of stock options trading to cover my trip to Bali & Malaysia for the EBS seminar and connect up with the XL Life Members in Malaysia etc.
The Trade - 25/9/2007
AMD
Options/Contract = 100
Buy 100 AMD @ $13.50
Sell 1 AMD $13.00 Call @ $0.91
Time Value: $0.41
Intrinsic Value: $0.50
Breakeven Point: $12.59
Assigned Return: 3.15% ($0.41/$13.00)
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NVDA
Options/Contract = 100
Buy 100 NVDA @ $35.85
Sell 1 NVDA $35.00 Call @ $2.24
Time Value: $1.39
Intrinsic Value: $0.85
Breakeven Point: $33.61
Assigned Return: 3.97% ($1.39/$35.00)
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GM
Options/Contract = 100
Buy 100 GM @ $35.06
Sell 1 GM $32.50 Call @ $3.87
Time Value: $1.31
Intrinsic Value: $2.56
Breakeven Point: $31.19
Assigned Return: 4.03% ($1.31/$32.50)
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NOK
Options/Contract = 100
Buy 100 NOK @ $36.74
Sell 1 NOK $35.00 Call @ $2.66
Time Value: $0.92
Intrinsic Value: $1.74
Breakeven Point: $34.08
Assigned Return: 2.63% ($0.92/$35.00)
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