The Up Scenario In Trade Options


The Up Scenario In Trade Options
What Kinds Of Return You Can Expect From Your Trade Options In the up scenario, the maximum gain that can be attained is trade options finishing at $10.00 or higher. At $10.00, you would profit from the full value of the extrinsic value of the trade options, which is $.50 and you would also have $.50 of capital appreciation from the trade options for a total of $1.00. This represents a 10.52 one-month return or an annualized return of 126.32. It is not realistic to expect this type of return from the trade options every month, but remember, recent studies show that premium selling works approximately 80 of the time, which is still very good.

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