Seeking Alpha
  • swingtrader427
    EXSB CHKP Jan 57.50 call = 2900% profit and DLTR Jan 55 call =1600% profit. Will apply profits to lower the BE on the remaining spread legs.
    10/23/12
    Reply (7)
    • Ocean Man: How can you have more than 100% profit on a Buy To Close???
      10/23/12
    • swingtrader427: 10 contracts STO FOR $1.50 (10 x 100 shares x $1.50 = $1500) and EXSB for $.05 (10 x 100 shares x .05 = $50) $1500 - $50 = $1450/$50 = 29
      10/24/12
    • Ocean Man: That's some hilarious math.
      10/24/12
    • swingtrader427: It's not hilarious math. The profit is based on the # of contracts. The cost is $50 and the profit is the sell price - the cost = $1450.
      10/26/12
    • swingtrader427: Sales price - cost = Profit. Profit / cost = ROI. If you bought Apple stock for $50 and now its $600, your profit is more than 100%
      10/26/12
    • Ocean Man: You couldn't be more wrong. You divide dollar amount of gain by amount at risk. And your risk on this trade was infinite.
      10/26/12
    • jamesingram32: are you confusing the option price and the contract price. I don't see the 1000sss% profit there?
      7/29/13