This is with a $1,000 investment. Contract prices as of today Buy 8 contracts of June $9.00 which costs $960. Simultaneously sell 8 contracts of May $9.00 which gives me $800. After that buy 4 contracts of June $9.00 which costs $480. Simultaneously sell 4 contracts of May $9.00 which gives me $400. After that buy 2 contracts of June $9.00 which costs $240 Simultaneously sell 2 contracts of May $9.00 which gives me $200. Then I sell all my June calls ($1,680) and use that to buy back all my May calls which costs $1,400. I then profit $280 and can sell the calls I bought back for $1,400â¦I then have $1,680 or 68% over my initial investment.
1) Which contracts are referring to? 2) You would have no profit. You paid $1680 for the June contracts and sold them for $1680. You sold-short the May at $1400 and bought them back at $1400. 3) You'd actually have a loss with commissions and fees taken into account.