Thursday, March 20, 2008

March OE summary: virtual trading account

AAPL bull put spread: Mar 125p/120p: AAPL=133.27. max profit realized=(6.20-3.85)*200-14.95*2=440.10. P/L=88.7%

GRMN bull put spread: Mar 60p/55p, credit=2.3: GRMN=60.13. stupid, I covered the 60p leg. Otherwise max profit would have realized. Loss=(3.8-1.5-6.4)*200-14.95*3=-864.85. Original max loss=(5.0-3.8+1.5)*200-14.95*2=510.10.

DIA iron condor spread: Mar 114p/116p/130c/132c: DIA=123.11. max profit realized=(0.15+0.52-0.06-0.32)*500-14.95*4=85.20. P/L=17%

Ongoing April spreads:
CMP Apr 55c/60c: CMP=57.65. in loss region.
XLF Apr 18p/20p: XLF=26.32, in max profit region.

Lession: a max profit spread realized a much bigger loss because of adjusting.

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