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SLIGHT MISCALCULATION

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Here's a good lesson for all of us to learn. When I was writing the previous post on closing the QQQQ ITM Strangle, I looked quickly at the QQQQ option chain. I saw a 10 volume figure and used the wrong figure from the wrong strike price. I used the bid on the January 2007 $32.50 call instead of the sale of the January 2007 $32.00 call. Therefore, I reported that we took in $9.90 ($9,900) instead of the $10.20 ($10,200) that we actually received.

It's only $300, but then again, there's no such thing as ONLY $300. We are in a business that requires attention to detail. That's why I constantly stress that you double check symbols before placing orders, etc.

Fortunately, my $300 oversight was just in the typing of a column posting -- not in the real world. This could have been an expensive boo boo.

So, the actual profit figure on the QQQQ closeout (see previous post) should be $750 instead of $450. The return on risk is now about 16.4%.

Sorry about the miscalculation. I learned from it. Let's hope we can all learn from it.

Take care and trade smart!

Mike

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