Sold 4 MFC 10OCT Puts 17.00 @ @1.43, Mark $16.27, Loss -0.5%

By Paul | Published: June 28, 2010

Not much is happening in the market as it is trading in a tight range.  This is not good for my options as the time delta will slowly eating away my premium.  So I’ve decided to unload this position at a small loss just now as the market is testing support across the board.

The U.S. dollar index is testing $86 resistance.  Oil is testing $78 support.  S&P500 is testing the 1070 support zone.

Purchase price for these puts were $1.48 per contract last Wednesday.  When Manulife Financial (MFC.TO) was trading at 16.38.

Loss is ($1.48 – $1.43) * 100 * 4 = $20 – $13.95 * 2 commission = $47.90 = 0.5% of account.

As you can see, the commission is horrible on my RRSP trading account at Questrade.  I will wind down trading options from now on and move back to trading forex in the summer.  My live account at Dukascopy is ready…

Update: The market finally broke support the day after this exit.  This was not a good exit as I lost patience.  MFC is testing $16 support on June 29th opening hour and I don’t expect it to hold.  This could turn out to be a winner if I had held.

Manulife Financial (MFC.TO)

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  1. By Bought/Sold 250 TCK.B.TO @ $34.10/$33.68, Loss -1.2% | Quantisan.com on June 28, 2010 at 2:18 pm

    [...] Trading Strategy « Sold 4 MFC 10OCT Puts 17.00 @ @1.43, Mark $16.27, Loss -0.5% [...]

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