Cashed Out of XLP 108% Returns
Hope everyone had an awesome 4th of July! We just closed our XLP vertical call spread with a sell order this past Friday 13, July. You may recall we blogged on the Select Sector Consumer Staple on 14 June. We also issued an Options Alert to Emerald Chasers on 15 July at 07:20 am MST.
The alert was: buy XLP 27 Jul 50.5/53 call @.96
This translates in English to: we were moderately bullish on the XLP thinking it would gradually go up in a range between $50.5 and $53 over a month and a half, so when the underlying ETF price closed at $51.28 on 14 Jun we bought the vertical call spread for $0.96 per share; with 1 contract containing 100 shares this equates to us having risked $96.
To a further extent you see that the underlying does not have to move much when trading options as the XLP only made 2.8% move from $51.28 to $52.72. So how is it we made a rate of return over 38 times this amount? That's the power of options...to learn more hit us up and take the Basic Options Course, It will set you free, we are emerald chasers...
