11/3/05 09:08:54 STRANGLE BUY +10 INTC 100 APR 06 25 CALL 1.25 BUY +10 INTC 100 APR 06 22.5 PUT .90 DEBIT=2.15 Sell the above recommendation for a gain of 68% within 20 days SELL +10 INTC 100 APR 06 25 CALL 2.65 SELL +10 INTC 100 APR 06 22.5 PUT .25 Credit=3.15 2.15/3.15= 68%
Nice, but your math is off, in 2 ways. First, you are not computing the % gain correctly. (Hope this is just a fluke, rather than what you routinely do.) If the credit were 3.15 (see below), then % gain would still not be 2.15 / 3.15. Rather, it would be (3.15 - 2.15) / 2.15 = 1.00 / 2.15 = 46.5%. Second, using your individual option prices (consistent with what I see on my screen), the credit is 2.65 + .25 = 2.90, not 3.15. Then % gain is (2.90 - 2.15) / 2.15 = .75 / 2.15 = 35%.