Monday, January 24, 2011

Results

This spread worked out very nicely for me.

As you recall, I spent $1550.10 buying 5 Calls and 5 Puts for ADBE at the Jan 29 strike. When earnings came out after the bell on December 20th, I sold my 5 puts for a total of $189.99, because earnings were positive. This means that I needed my calls to provide me with $1361.11 (1550.1 - 189.99) for me to break even.

I sold my Calls before expiration for a total proceeds of $2459.77. This brought me a profit of $1098.66, or 71% profit. not bad.

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