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A little challenge while we wait for OE on Friday
#1

If you bought a Dec 22 $60 call today for .55c and on Friday the stock price is $65.00.  What is your rate of return?

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#2
Buy the January $60 call - you'll pay more but the sell-down will likely not be announced until 3 weeks after the PNG-IOC negotiations are announced. AIMHO.
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#3

'Optionray' pid='14954' datel Wrote:

If you bought a Dec 22 $60 call today for .55c and on Friday the stock price is $65.00.  What is your rate of return?

Ok I'll bite.  985% annualized?

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#4

(12-19-2012, 06:18 AM)GeraldR Wrote:

(12-19-2012, 06:05 AM)Optionray Wrote:

If you bought a Dec 22 $60 call today for .55c and on Friday the stock price is $65.00.  What is your rate of return?

Ok I'll bite.  985% annualized?

Yes, I was looking for the Annualized rate, I should have specified.

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#5

'Optionray' pid='14960' datel Wrote:

'GeraldR' pid='14958' datel Wrote:

'Optionray' pid='14954' datel Wrote:

If you bought a Dec 22 $60 call today for .55c and on Friday the stock price is $65.00.  What is your rate of return?

Ok I'll bite.  985% annualized?

Higher, anyone else?   Extra credit if you show your work Smile

interesting, because if you use an optioncalculator it says  around 5 so I also would say 900%+..but its only on 4 days..so if you want it annulized..

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#6

(12-19-2012, 06:29 AM)freddiekingman Wrote:

(12-19-2012, 06:20 AM)Optionray Wrote:

(12-19-2012, 06:18 AM)GeraldR Wrote:

(12-19-2012, 06:05 AM)Optionray Wrote:

If you bought a Dec 22 $60 call today for .55c and on Friday the stock price is $65.00.  What is your rate of return?

 

Ok I'll bite.  985% annualized?

Higher, anyone else?   Extra credit if you show your work Smile

interesting, because if you use an optioncalculator it says  around 5 so I also would say 900%+..but its only on 4 days..so if you want it annulized..


5.00 / 0.55 = 9.1 or 910% (trading fees not included as they were not provided).... Just for fun, annualized return would 910% x (365/4) = 83,038%  (copied Bdahls answer from yahoo)

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#7

Hi guys -- All I can say is WOW ! Nice return. BTW, we traded almost 140,000 shares in the last 30 minutes today ! maybe some more covering ??

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