First day

6/8/2011 2:16 PM Option: Sell to Close at Limit SINA1118R105 (SINA 105.00 – Jun 2011) 13 $8.00 $8.10 $52.74 $10,477.26 $101,647.26
6/8/2011 11:09 AM Option: Buy to Open at Market SINA1118R105 (SINA 105.00 – Jun 2011) 13 $6.80 $42.74 $8,882.74 $100,000.00

You can see here i bought a put at 6.80 when SINA was going down. I based myself on gut feeling that panik would continue to push people to sell below the 100 mark, allowing my contract to rise to $8.

There is no strategy or options trading secret here!  This is an example of how much options can amplify your gains.

You can see that i made a total of 13*100*1.3. That is The difference in contract prices, times the amount of contracts (13) times the amount of assets the contracts represent (100).

So in a matter of 3 hours i made 1647.26, after commissions are removed.

 

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