Set #3
BUY
(4) 10 lots OCT 10450 CE 93
(1) 10 lots OCT 10450 PE 100
cost: 1950 points.
Sell
(3)4 lots OCT 10300 PE 101
(3)6 lots OCT 10300 PE 115
(2) credit: 1090
Liquidation:
(1) 10450 PE 217 * 10 = 2170 points
(2) credit = 1090
(3) 10300 PE 118*10 = -1180
Total: 2080
Paid 1950
Profit 130 points.
less 30 points expense for 30 lots of transaction.
Net Profit 100 points
When I liquidated, before expiry I got a profit of 130 points.
However, if I had a strategy which allowed me to liquidate at expiry, then my profit would be:
10450-10300 = 150 * 10 = 1500
credit = 1090
cost = 1950
Net Profit = 640 - 40 = 600 points.
Huge Difference.... 100 points v/s 600 points.
It is a motivation strong enough to reassess the exit plan.
BUY
(4) 10 lots OCT 10450 CE 93
(1) 10 lots OCT 10450 PE 100
cost: 1950 points.
Sell
(3)4 lots OCT 10300 PE 101
(3)6 lots OCT 10300 PE 115
(2) credit: 1090
Liquidation:
(1) 10450 PE 217 * 10 = 2170 points
(2) credit = 1090
(3) 10300 PE 118*10 = -1180
Total: 2080
Paid 1950
Profit 130 points.
less 30 points expense for 30 lots of transaction.
Net Profit 100 points
When I liquidated, before expiry I got a profit of 130 points.
However, if I had a strategy which allowed me to liquidate at expiry, then my profit would be:
10450-10300 = 150 * 10 = 1500
credit = 1090
cost = 1950
Net Profit = 640 - 40 = 600 points.
Huge Difference.... 100 points v/s 600 points.
It is a motivation strong enough to reassess the exit plan.