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Options-trader

My Option Strategy

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I propose you to observe the process of my option combination conducting.

Size of investment - 50,000$. For purchase straddle we put no more than 2/3 total amount of investment.

The sum rest is necessary for management of a combination.

Today i opened long straddle of CLF (Cliffs Natural Resources Inc Co).

It has been bought 38 contracts of april put 65 (3.65$) and 38 contracts of april call 65 (5.05$).

In purchase it has been spent: 8.70*100*38=33.060$.

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Today i advance the combination. So i bought 38 contracts of april call 60 (3.70$)

In purchase of third position has been spent: 3.70*100*38=14.060$. Total investment to combination is 12.40*100*38=47.120$. This is maximum.

At opening share is trading near 69$. I close all the combination. Sell aprill call 65 at 5.2$ (bid price). Sell call 60 at 9.8$ (bid price). Sell put 65 at 1.53$ (bid price). Investments to the combination per unit was 12.40$. Profit per unit is 4.13$ or 33%!

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