Comments on: April 2009 Results http://optiongenius.com/blog/april-2009-results/ The Option Genius Blog Tue, 15 May 2012 16:09:12 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Genius http://optiongenius.com/blog/april-2009-results/comment-page-1/#comment-11 Genius Wed, 27 May 2009 05:35:33 +0000 http://optiongenius.com/blog/?p=15#comment-11 The return is a weighted average of the returns for all the trades of the month. So if Trade A is 20% of the portfolio and Trade B is 10%, then Trade A counts twice as much as Trade B. The return is a weighted average of the returns for all the trades of the month. So if Trade A is 20% of the portfolio and Trade B is 10%, then Trade A counts twice as much as Trade B.

]]> By: Aaron http://optiongenius.com/blog/april-2009-results/comment-page-1/#comment-9 Aaron Fri, 22 May 2009 23:33:24 +0000 http://optiongenius.com/blog/?p=15#comment-9 What formula do you use to figure out your monthly returns? Do you take into account that each trade is weighted differently, or do you just add up the ROI's and divide by the number of trades? What formula do you use to figure out your monthly returns? Do you take into account that each trade is weighted differently, or do you just add up the ROI’s and divide by the number of trades?

]]> By: Genius http://optiongenius.com/blog/april-2009-results/comment-page-1/#comment-8 Genius Tue, 19 May 2009 15:24:53 +0000 http://optiongenius.com/blog/?p=15#comment-8 Good point. I am actually planning to write about how this is a misconception. Paying $5 or $10 on an option trade when you are making several hundred dollars does not effect the outcome very much. There are still plenty of people out there that are staying away from option selling because someone told them the commissions are too high. I hope to write about how this is not the case. Everyone has different commission rates. My rates are $1.25 per option and I try to keep the number of options in my trades as low as possible. For example, an iron condor on the RUT done 3 times, would be 12 options. But do the same trade on the IWM which is just a smaller version of the RUT and you are trading 120 options for the same trade. With increased competition amongst option brokers, commissions keep coming down which is great for us option traders. On the other hand, if you are using a broker that is not "option friendly" you can be paying $14.95 per option. At that rate, it's not worth it. Good point. I am actually planning to write about how this is a misconception. Paying $5 or $10 on an option trade when you are making several hundred dollars does not effect the outcome very much. There are still plenty of people out there that are staying away from option selling because someone told them the commissions are too high. I hope to write about how this is not the case.

Everyone has different commission rates. My rates are $1.25 per option and I try to keep the number of options in my trades as low as possible. For example, an iron condor on the RUT done 3 times, would be 12 options. But do the same trade on the IWM which is just a smaller version of the RUT and you are trading 120 options for the same trade.

With increased competition amongst option brokers, commissions keep coming down which is great for us option traders. On the other hand, if you are using a broker that is not “option friendly” you can be paying $14.95 per option. At that rate, it’s not worth it.

]]> By: DevonG http://optiongenius.com/blog/april-2009-results/comment-page-1/#comment-7 DevonG Tue, 19 May 2009 10:02:34 +0000 http://optiongenius.com/blog/?p=15#comment-7 Why don't you factor commissions into your profit/loss? As you know, the cost can be quite significant especially on labor intensive trades. Why don’t you factor commissions into your profit/loss? As you know, the cost can be quite significant especially on labor intensive trades.

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