Options Trading

I attended a 4-day Jan 2007 seminar on Options Trading in Singapore and on the final seminar day, 30th Jan 2007, I decided to virtual trade using a strategy called a Straddle.

It was an LLL Feb 80 Call and Put, together the premium was $3.15

3 days later (2nd Feb 2007) I sold the Call for $5.80. The Put is worth very little currently. I expect to let it expire worthless.

I made 84% returns in a matter of 3 days.


Also, I saw that COH crossed and closed above the 22dma line on 29th Jan. On 30th Jan it opened above the 22dma, and I thought to do a Short Term trade.

I bought a COH Feb 45 Call only intending to be in it for 3 days. The premium was $0.85. I placed a Stop Loss at $0.50

I sold it 2 days later (1st Feb 2007) at $1.85, with a 117% return.

Not bad eh?