Welcome to NexusFi: the best trading community on the planet, with over 150,000 members Sign Up Now for Free
Genuine reviews from real traders, not fake reviews from stealth vendors
Quality education from leading professional traders
We are a friendly, helpful, and positive community
We do not tolerate rude behavior, trolling, or vendors advertising in posts
We are here to help, just let us know what you need
You'll need to register in order to view the content of the threads and start contributing to our community. It's free for basic access, or support us by becoming an Elite Member -- see if you qualify for a discount below.
-- Big Mike, Site Administrator
(If you already have an account, login at the top of the page)
if I buy it at 0.01, IM=$50? DTE=47? (not familiar with DA, its expiration is 11/04/2014?)
the ROI will be (20/150)/47*30=8.5% before commission. Is this correct? Can someone having the SPAN margin confirm with me? it looks good. Thanks.
Can you help answer these questions from other members on NexusFi?
I sold 40 options @ $0.03. My gross premium received was $2400.00. Commissions and fees on the opening sale was $256.40, for a net premium received of $2143.60. I paid $0.01 to buy the options back or a gross cost of 40 x .01 x 2000 or $800 plus fees. Fees were $1.41 per option or $56.40, so I paid $856.40 to buy the options back. My net profit was $2143.6 - $856.40 or $1287.20.
Since IM was $389.40, I risked or set aside $46,728 (3x IM X 40) in my acct for this trade. That is a raw ROI of 2.75% (my ROI was slightly higher because I got a small rebate on some of the fees). I held the trade for 7 days. The monthly ROI would then be 2.75/7*30 or 11.81% per month or 141.67 annual.
Thanks to Kevinkdog's link, I open my acct with OX with 50 free trades.
I really want to buy 3 of them at 0.01, so my ROI will be (20/222)/49*30=5.5%, I plan to hold them till expiration, what do you think, RON? I haven't tried other selling yet except ES. Thanks.
Platform: "I trade, therefore, I AM!"; Theme Song: "Atomic Dog!"
Trading: EMD, 6J, ZB
Posts: 795 since Oct 2009
this is excellent, and congradulations on your successful trade
to earn that I can almost guarantee more excitement in the Emini pits..
what really concerns me, are the required necessary funds on account (margin) based on the increased SEC Reg-T margin on option trades, particularly naked options too...