Sunday, April 22, 2012

Reality of ROK Bull Call Spread

Let's put the previous post into a reality check.

Date Type Qty Ticker Cost basis Amount
9/19/2011 Buy To Open 1 ROK Apr12 35 Call $24.06 ($2,413.50)
9/19/2011 Sell To Open 1 ROK Oct11 65 Call $1.06 $98.50






9/27/2011 Buy To Close 1 ROK Oct11 65 Call $0.93 ($94.52)
9/27/2011 Sell To Open 1 ROK Nov11 65 Call $1.98 $196.48






10/6/2011 Buy To Close 1 ROK Nov11 65 Call $2.39 ($240.89)
10/6/2011 Sell To Open 1 ROK Jan12 65 Call
$4.49

$447.10







11/17/2011

Buy To Close

1

ROK Jan12 65 Call

$9.96

($997.52)

11/17/2011

Sell To Open

1

ROK Apr12 70 Call

$9.46

$944.46







4/20/2012

Sell To Close

1

ROK Apr12 35 Call

$0

$0.00

4/20/2012

Buy To Cover

100

ROK - Option Exercise

$35

$3,500.00











Profit: 

$1,440.11

This would be $1440.11 profit from the initial investment of $2413.50, which is a gain of 59.67% over a period of 7 months, which is 102.29% pa. This has already taken into consideration the trade commission and registration fees.

So, is Call Bull Spread the best strategy? I would say I had a good entry point and the market were on my side.
Make your own CALL, though.

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