#SPX1dte Sold to Open $SPX Aug 30th 2745/2765-2935/2955 condors for 3.00. IV 21.3%, SPX 2867.
How the heck are they calculated on a put sale? Since I’m really bored today I tried to put this in writing. I’m not the greatest math guy out there so absolutely looking for corrections and errors here.
This assumes 100 percent cash secured required like in a typical tax deferred retirement account.
Calculating Annualized Returns On A Put Sale
(Strike Price x 100) – Premium Received = Margin Required
Premium Received / Margin Required = Actual Return
365 / Days in Position = Possible Trades Per year
Possible Trades Per Year x Actual Return = Annualized Return
3600 – 105 = 3495 (margin required)
105 / 3495 = .0300429 (return for 53 day trade)
365 / 53 = 6.8867924 (possible trades per year)
.0300429 x 6.8867924 = .2068992 (annualized return)
20.7 annualized rounded
BTC $SPX 2940/2950 8/30 #BeCS @.90. Basis was $2.00 after a couple of rolls. Glad to have the buying power back.
#ShortPuts – Starter position…
Sold EWZ OCT 18 2019 36.0 Put @ 1.05
20.7% annualized if held to expiration…
Sold Oct. 18, 180/190/220/230 for 3.76
Jeff do you have MOMO info? Thank you