Please see the screenshot attached. It is from Optiomistics scanner. I scanned for expensive puts there. First record says to sell Put with a strike 5. The Put price is 2.10. The stock is at 2.77
BALT 2.77 1.5M 20 Dec '14 18 5.00 P 2.10 50 -4.69 1.563 68.75%
It says ROI is 68.75%, but there is no any time value (-4.69), where is the profit from?
If stock is at 2.77 and I sell 5 strike put then when assigned I will own a stock bought for $5, but its current price is 2.77 (let's imagine it did not change during the period) and I am now down $2.23.
I spend $500 (for 100 shares) to buy the stock when assigned. Then I sell the stock to the market for $277. Also I have got $210 from the put sold. So I spent $500 for the stock but got only $487 in return (277+210). And there is no any ROI, but loss, if assigned. Am I correct with the calculation?
BALT 2.77 1.5M 20 Dec '14 18 5.00 P 2.10 50 -4.69 1.563 68.75%
It says ROI is 68.75%, but there is no any time value (-4.69), where is the profit from?
If stock is at 2.77 and I sell 5 strike put then when assigned I will own a stock bought for $5, but its current price is 2.77 (let's imagine it did not change during the period) and I am now down $2.23.
I spend $500 (for 100 shares) to buy the stock when assigned. Then I sell the stock to the market for $277. Also I have got $210 from the put sold. So I spent $500 for the stock but got only $487 in return (277+210). And there is no any ROI, but loss, if assigned. Am I correct with the calculation?
