We all know that trading options is exciting, highly competitive, and can be very profitable. The key to long term and consistent profits in option trading is options education. The McMillan Mentoring Program, which is run by former Market Maker, white badge AMEX Floor Official, professional trader, and longtime MENSA member Stan Freifeld, can take your trading to the next level. To see where you stand, take Stan’s Options Challenge by answering his question on the first Monday of each month.
Every participant who answers this week's question correctly within 7 days will receive complimentary access to Lawrence McMillan's Modern Portfolio Protection white paper.* Good Luck!
Stan’s Options Challenge: Question #7
A trader buys the 45/50/55 Call Butterfly 10 times for a total debit of $750. Prior to expiration, he is assigned on all 20 of the 50 Calls. He decided to close the entire position this way: he exercised the 45 Calls, sold the 55 Calls @ 7.25 each, and bought 1,000 shares of XYZ for $62/share. The total of commissions and exercise and assignment fees is $100. The total Gain or Loss on this trade was:
A) $600 Loss
B) $100 Loss
C) 0 Break Even
D) $500 Gain
E) Cannot be determined
Click Here to Submit Your Answer
*Answers must be received by 12:00 eastern time on 6/9/14. Participants may only submit 1 answer. The complimentary access to the download will begin after the conclusion of the 1 week period. Winners will receive an email containing a unique coupon code for the product.
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