Dadeeman Posted July 21, 2016 Posted July 21, 2016 (edited) Does anybody know where the 2.422... and 3.307... comes from and what its for and why is it there in the trade statement? It's in the T. Price (Transaction Price) column. I think my P&L for the NFLX RIC is $224 .10 in the P&L column. Thanks for your help! Edited July 21, 2016 by Dadeeman Quote
greenspan76 Posted July 21, 2016 Posted July 21, 2016 (edited) They refer to the opening prices of the lots you closed. Looks like you paid $0.885684 ($3.307814 - $2.422113) for the 95/93 put spread and then closed it out for $1.65 ($8.55 - $6.90). I'm not sure why you closed it for $1.65 since it was trading for $1.90+ at that time - I closed mine at 09:40 and got an average price of $1.927 (but I'm betting you put in the wrong sign and got the market price instead of what you could have gotten - I've done that before). Nonetheless, the 95/93 put spread is one half of the entire RIC. The other half, the 103/105 call spread will likely expire worthless, so you have to look at the price you paid for the entire trade and compare that to the amount you received for closing one side to know your gain on the entire trade. In this case, if you paid $1.50 for the whole RIC like Kim did, you're looking at a $0.15 gain, or 10% before commissions. (But the shorter answer is yes, you made $224.10 on that half of the RIC, but you have to subtract whatever you paid for the other half of the RIC to get your profit on the whole trade) Edited July 21, 2016 by greenspan76 added shorter answer/clarified 1 Quote
Dadeeman Posted July 21, 2016 Author Posted July 21, 2016 (edited) Greenspan76, what do you mean by "put in the wrong sign" ? Do you mean buying the asking price? not sure if I understand that part yet. I am struggling with getting prices better than the market price. Any guidance/suggestions/recommendations would be appreciated. Thanks! Edited July 21, 2016 by Dadeeman Quote
greenspan76 Posted July 21, 2016 Posted July 21, 2016 @LuckyStar What I meant was that maybe you entered a negative sign when you didn't need it or vice-versa, causing your trading platform to execute at the bid instead of at a price you could have gotten if you entered the correct limit order. I don't know if that's what you did - I was just speculating since your price was much lower than the prices others were getting around that time. What I did was to enter a limit order to sell at $1.95, then I lowered it one penny at a time until all contracts were sold, which resulted in an average price of $1.927. A lot of other members just entered a limit order for $1.95 and waited it until it filled. Quote
Dadeeman Posted July 22, 2016 Author Posted July 22, 2016 (edited) @greenspan76 Are you trading live? I'm paper trading and I was perplexed by your question of how you got better pricing than I did and I traded in your time frame. IB told me that live accounts get executed first over paper accounts. Whew! that explains a lot. Edited July 22, 2016 by Dadeeman Quote
greenspan76 Posted July 22, 2016 Posted July 22, 2016 @LuckyStar Yes. That explains it - sometimes paper trade fills are different than live fills. Quote
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