Current and Past Trades

Current and Past Trades

Current Trades

Calendar Spread opened March 2 on BBY. Short leg 62 expiring this Friday March 6 credit $3.02. Long leg 62 expiring on the next Friday March 13th debit $3.25. Net debit $0.23. The reason the net debit is so low is because BBY is releasing their earnings tomorrow morning March 3rd before market open. This is a higher risk trade because of the earnings release during the life of the trade. But it does have an excellent reward to risk ratio. If an opportunity to take profits arises today, I might take it.

Closed March 4 at credit of $0.45. So .45 - .23 = .22, this is almost a double in two days. I won't bother going through the numbers with commissions.

Past Trades

Calendar Spread entered on Tuesday February 24th. A long calendar, short leg Feb 27th 305 calls sold at $7.55, long leg Mar 305 calls purchased at $15.05, net debit $7.50. Position closed at $8.80 by selling the Mar 305 calls at $12.55 and purchasing the Feb 27 305 calls at $3.75 for a net credit of $8.80. Not counting commissions and fees you have $8.80 - $7.50 = $1.30, $1.30 / $7.50 = 0.173 or about 17% on a holding period of 2 days.

Fees were $0.04 and $0.03 for a total of $0.07. Commissions were $1.30 and $1.30 so total fees and commissions were $2.67. If we include the fees and commissions, we reduce the proceeds to $8.80 - $2.67 = $8.77, $8.77 - $7.50 = $127.33 / $750 = 0.169 call it 17%