lloydbee
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I currently have a custom position (initial entry 11th August) on $GOOGL and have made one adjustment on the 3rd Sep. The risk graphs are just gold to me and reinforce the reason why I do such trades...
- Had it just been a single sided Vertical I would be looking at a max profit of +6.5% ROI.
- If it was a typical IC it would be returning a max profit of +13% ROI.
- My current custom position is already just breaking the +79% ROI although technically after my adjustment the true % ROI drops because the trade reserved extra in margin, adjusted ROI now at +38%.
The position is so ridiculous now, being just 2 weeks away from expiration that the chance of losing money would require GOOGL to move +6% to the upside and -13% to the downside before I see a loss which a loss wont happen if these levels were slowly reached due to profit already taken pre-adjustment and also some remaining position within this zone.
If you are an options trader, think outside the box and don't hesitate to experiment (in a Virtual account first) as the rewards can offer safety and consistency with the advantage of some nice profits.
My $GOOGL entry risk graph...
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$GOOGL adjusted risk graph...
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$GOOGL Daily Chart
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- Had it just been a single sided Vertical I would be looking at a max profit of +6.5% ROI.
- If it was a typical IC it would be returning a max profit of +13% ROI.
- My current custom position is already just breaking the +79% ROI although technically after my adjustment the true % ROI drops because the trade reserved extra in margin, adjusted ROI now at +38%.
The position is so ridiculous now, being just 2 weeks away from expiration that the chance of losing money would require GOOGL to move +6% to the upside and -13% to the downside before I see a loss which a loss wont happen if these levels were slowly reached due to profit already taken pre-adjustment and also some remaining position within this zone.
If you are an options trader, think outside the box and don't hesitate to experiment (in a Virtual account first) as the rewards can offer safety and consistency with the advantage of some nice profits.
My $GOOGL entry risk graph...
![2014-8-27-GOOGL-entryrisk_zpsf275f1c1.jpg](/proxy.php?image=http%3A%2F%2F%5BURL%3Dhttp%3A%2F%2Fs1055.photobucket.com%2Fuser%2FLloyd_Bradford%2Fmedia%2F2014-8-27-GOOGL-entryrisk_zpsf275f1c1.jpg.html%5D%5BIMG%5Dhttp%3A%2F%2Fi1055.photobucket.com%2Falbums%2Fs503%2FLloyd_Bradford%2F2014-8-27-GOOGL-entryrisk_zpsf275f1c1.jpg&hash=cb557f9a986b244bc6ba0b098730e6ad)
$GOOGL adjusted risk graph...
![2014-9-5-GOOGL-adjustedrisk_zpscaf59b74.jpg](/proxy.php?image=http%3A%2F%2F%5BURL%3Dhttp%3A%2F%2Fs1055.photobucket.com%2Fuser%2FLloyd_Bradford%2Fmedia%2F2014-9-5-GOOGL-adjustedrisk_zpscaf59b74.jpg.html%5D%5BIMG%5Dhttp%3A%2F%2Fi1055.photobucket.com%2Falbums%2Fs503%2FLloyd_Bradford%2F2014-9-5-GOOGL-adjustedrisk_zpscaf59b74.jpg&hash=a821d1c4a30f0ff307a873ffaf7020fa)
$GOOGL Daily Chart
![2014-8-11-GOOGL_zps6ec05fd7.jpg](/proxy.php?image=http%3A%2F%2F%5BURL%3Dhttp%3A%2F%2Fs1055.photobucket.com%2Fuser%2FLloyd_Bradford%2Fmedia%2F2014-8-11-GOOGL_zps6ec05fd7.jpg.html%5D%5BIMG%5Dhttp%3A%2F%2Fi1055.photobucket.com%2Falbums%2Fs503%2FLloyd_Bradford%2F2014-8-11-GOOGL_zps6ec05fd7.jpg&hash=a723b9f74d03b31fb42ce51f07533b81)
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