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OPTIONS ADVENTURE!
Happy Friday everyone! I can’t tell you how happy I am to be home sitting next to my little one here! I thought today I would go through a real world trade step by step. A couple weeks ago I opened the following trade:
Sell 72 BIDU 97.5 Calls
Buy 72 BIDU 102.5 Calls
Basically this means I sold 72 call option contracts of a stock named BIDU. The strike price I sold the calls were was 97.5. At the time of the trade, for every contract I sold I received $36. To complete the spread I bought an identical number of BIDU calls at the 102.5 strike. For every contract I bought I had to pay $11. So my spread for this trade $25 per contract minus my broker commissions.
… READ MORE AT
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