Wednesday, May 08, 2013

Impressive Option

Near the start of the year (January 17th), I started looking a bit into options.  Not sure if I have the courage to buy such leveraged investments, but I will tell you that when things are going good they can do quite well.  I wrote down call option prices on 24 MFI stocks on the 17th of January.  I tried to pick strike prices that were in the money or almost in the money, to try and be consistent.  Here is how the 24 Options have done in 4 months:


Stock Start Price Strike Expire Dt Option Price Current Option Price Change
JCOM                32.02         30.00 6/21/13              3.00                      11.00 267%
KLIC                12.45         12.00 6/21/13              1.65                         0.40 -76%
LPS                23.38         24.00 6/21/13              2.10                         4.00 90%
NSU                  4.53           5.00 6/21/13              0.35                         0.05 -86%
VG                  2.50           2.00 6/21/13              0.65                         0.75 15%
MANT                25.79         30.00 8/16/13              0.75                         0.50 -33%
PDLI                  7.10           7.00 8/16/13              0.50                         1.00 100%
APOL                20.16         20.00 1/17/14              3.70                         1.94 -48%
GME                23.07         22.00 1/17/14              3.20                      15.51 385%
IDCC                44.63         43.50 1/17/14              7.65                         6.50 -15%
MSFT                27.04         27.00 1/17/14              2.11                         6.00 184%
QCOR                25.53         25.00 1/17/14              5.60                         8.80 57%
RTN                57.77         57.50 1/17/14              3.80                         6.30 66%
STX                34.30         30.00 1/17/14              7.00                      11.90 70%
UIS                17.67         17.00 1/17/14              3.20                         3.50 9%
AAPL             506.09      500.00 1/17/14           64.00                      21.85 -66%
CF             217.85      210.00 1/17/14           30.03                         8.45 -72%
CSCO                21.03         20.00 1/17/14              2.50                         1.74 -30%
DELL                12.61         10.00 1/17/14              2.97                         3.30 11%
HLF                45.06         45.00 1/17/14              8.45                         4.90 -42%
HFC                46.36         45.00 1/17/14              6.62                         9.40 42%
NUS                42.50         40.00 1/17/14              7.50                      15.50 107%
SAI                11.84         12.00 1/17/14              1.07                         3.00 180%
WCRX                13.50         11.00 1/17/14              2.45                         4.00 63%
Average




49%

2 comments:

Paul T said...

But in a dropping market, you can get completely wiped out.

Not to mention the the spreads and relatively low volume of options.

Pass

Marsh_Gerda said...

Paul - I agree and that is why I said I do not have the courage to try such leveraged investments. Thanks for the note.