Monday, November 3, 2014

Daily trade report: Coffee and computers

Today I tried to close a position Starbucks, but as it's quite far OTM (out of the money) the contracts are rather illiquid (no buyers and sellers) and my order didn't get filled.  I was however, able to close my position of Microsoft. 

Here's the closing screen-cap for your viewing pleasure:  Remember the "bear put" is the OPPOSITE of the "bull put" so BUYING the bear spread CLOSES the bull spread.

5 contracts of Microsoft (MSFT) DEC $42/40 bull put spread 
Position open: Sep 3
Position closed: Nov 3
Position open: 61 days
Maximum Premium : $155.51
Maximum loss: $844.49
Closed @ 78% capture ($115.51)
Representing an annualized yield of 78%

Does that sounds a little bit better than holding an index ETF?

Am I getting through to you "can't-beat-the-index-naysayers" yet?

Stay hungry my friends.

1 comment:

  1. Another successful spread! Sometimes you just can't convince or teach the unwilling.