Hey Clive, Toofuzzy, How do you calculate the return on option buys/sales and the final results?
Say you sell a $20 PUT 90 days out for a $1/share and then it gets assigned at a cost of $20/share. This would mean that your actual costs is $19/share. If you then sell a $20 CALL for a $1/share 90 days out. If it then gets assigned you have netted $2/share.
Of course this does not include the AIM shares which remain in the position regardless of the options play.
And this does not include commissions and SEC charges. My cost of assignment is $15 and the cost of options is $1.25/per contract.
So what date does one use to calculate the returns? If you use the date the PUT is assigned it does not include the income that happened 30 days prior.
What is the best way to do this?
The posts I did about mixing AIM with options is working quite well so far with a total return including dividends and stocks still on hand of just over $5000 on $42,500 in working capital. It surprises me that I have done so well with this approach. The total of all dividends on the rest of the AIM positions (not including the options positions) is a bit less than $3,000, so the results are great, in my mind.
