Tuesday, December 20, 2011

Profitable Trade: General Electric (GE) Puts

Today I closed out the following investment in a taxable account:

11/17/2011   STO 3 GE Jan 21 14 Puts @.49                             134.75
12/20/2011   BTC 3 GE Jan 21 14 Puts @.05                              -15.04

I closed this trade as I got down to the .05 mark where I'm not charged commissions to exit the trade. In addition I wanted to free up funds for another transaction. We made $119.71 in this transaction. This is a return of 2.94% in 33 days which equates to 32.51% annual. If one were to calculate return on margin (ROM) the returns are impressive. This investment had a low maintenance requirement of $533.24. The ROM is 22.45% or 248.31% annual. I can live with that :)

1 comment: