Today one of my GTC (good till cancelled) orders closed my Google spread for December.
Here's the brick:
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CLOSED: GOOGL - Google
5 contracts DEC $500/495 bull put spread
Position open: Oct 24
Position closed: nov-24
Position open: 31 days
Maximum Premium : $284.06
Maximum loss: $2215.94 (2500-284.06)
Closed @ 71% capture ($209.06)
Representing an annualized yield of 107%
I'll be looking to re-enter new spreads in the future on any upcoming days of market retreat.
Stay HUNGRY my friends!
Very cool. How do you get the 107% annualized yield? With my poor math skills I arrived at 142%.
ReplyDeleteKeep up the good work.
Thanks for the inquiry. I did a quick re-evaluation of my formula and as it turns out I am understating. But not by quite as much as you got to. Remember, it's the total money collected AFTER commissions divided by the max risked capital (which is the spread MINUS the MAX possible gain) and then annualized.
ReplyDelete