3 ms·

By what percentage did you increase your initial investment? I'm just curious about trading options in general. Would be interesting to learn how holding onto y

• veyron 14y ago
  I shorted the equity directly. The main costs are: - Transaction and Margin costs (those are generally 1 cent per share per side, roughly .06%) - Borrow costs (For that trade it was 30% annualized. I held it for 6 days so its .7%) So the cost to the trade was .76%. The gross return (since you calculate returns relative to the starting point) is (31.5 - 27) / 31.6 = 14.28% and the net return is 13.53% Note that I didnt short as much as I could have -- obviously the return would be higher if I borrowed extra money to short.
  • spaghetti 14y ago
    Interesting. +1 for sharing actual numbers as that helps the learning process along quite a bit imo.