Obviously options are not for everyone. It's almost an art rather than a "set-in-stone" technique.
Molly has exited her trade. Reminder: She bought 5 contracts of the DIA 112 calls for October. This strike price represents the Dow (DJIA) at 11,200. She paid $2.57, or $1,285. She had in an order to sell them at $5. She bought the DIA $114 calls for $$1.70. Again five contracts totaling $850. Her order to sell was at $3.40.
The market went up and down, time was going away. Monday was a good day, the Dow going up 330 points. Yesterday it was flat, arguing all day with being up then down. Her options were up. Today she canceled her GTC order and just sold them.
I thought that if the Dow went up another 200 points or so, that would be the time to get out, if I were doing the trade. She looked at it around 12:30 PM, just before the market closed, and changed the order to sell to a market order. She got out at $4.30 on the $112s and $2.77 on the $114s. Not a double, but pretty good for ten days.
Here's the math: Costs equal $2,135 (S1,285 for the $112s and $850 for the $114s).
Sell Price equals $3,535 ($2,150 for the 112s and $1,385 for the $114s).
Profit equals $1,400---minus a few commissions.
Way to go Molly. Congratulations!!!!
Wade
No comments:
Post a Comment