For some reason I was too busy to post last week when I bought back my YHOO 16.00 puts for $0.30. With commissions, the position was closed at $40.76. I opened this for $89.23 after commissions. Profit percentage just on the options is 118%, but to look at this properly one should calculate from the cash required to open the position: in the IRA, it’s 1600. That works out to 3% for three months. Not great, unless you compare it to just a straight savings account and approximately 12%/yr is not too bad.
I did immediately open a new position of the $15 April put. It’s a little far out, but I was trying to reduce my overall amount at risk, $1600 to $1500, and it was April that offered close to $1.00. Sold for $0.95. It’s a similar return to the 16 puts just closed out if it expires worthless.
I’m doing this in my own account, this is for entertainment and educational purposes only. I’m not recommending YHOO or any other stock. You have to make your own decisions