Starting with 100,000 fake dollars. lol, this should be interesting, considering the fact that I have really no idea what I'm doing. commissions are 7.00 / contracts are 1.25 -- ok, so here's my first trade: 10 CAT may 07 calls @ 67.50 strike commission + 1.25 * 10 contracts *1000 shares ..I think thats right total cost: 1,257.00
-- Closes at 72.67 on may 7th... 1. 72.67 - 67.50 = 5.17pts 2. 5.17pts x contracts(1000 shares) = 5,170.00 3. commission = 1,257.00 4. profit = 3,913.00
Going to try and get back into this journal. H&R Block Straddle play for earnings this coming week. 3 july 25.00 calls 3 july 25.00 puts cost of trade (7.00 per trade/ 1.25 per contract) : 21.50
closing out the Straddle trade: 3 july 25 calls bought for .05 sold for .05 (break even) 3 july 25 puts bought for 4.00 sold for 3.50 (up .50 ) profit on trade .50 cents on 300 shares --> 107.00 after 43.00 in commission. Little gain because HRB (H&R Block) didnt have blow out earnings which is what is needed for a straddle like this to work. Not bad though for a beginner Balance 104,020.00
Ha ya. I dont know what happened but I drifted away from this journal for a while. Im just messing with different strategies and posting the results with over 100k in fake money There are so many way to trade options it boggles my mind.
Straddle play for DNA (Genentech) earnings on July 14th 5 AUG 85.00 calls @ 1.00 5 AUG 75.00 puts @ 1.95 cost of trade: 26.50
1. This is not a straddle, it is a strangle. 2. The cost of the trade is $2.95 per strangle or $295. For 5 of them the cost is $1,475.00