Wrapping Up 2017 - It's Been A Great Year!

Hello Smart Option Sellers! Lots to discuss today, so read on for this last alert of 2017. Trade Results - Gap Inc. (GPS) A great way to finish off this year - with another win. We had no problem getting filled on the GPS buy-back order yesterday at our price of $.06 per contract. Some of you were even able to get it for $.05 per contract. Well done! Here's what we did: Bought back (bought-to-close) all of the GPS March 2018 $18 put options for an official buy price of $.06 per contract as a closing transaction (bought-to-close). If you did not place your order yesterday, you should have no problem getting filled if you still wish to do so. Here are the profit details: We originally established (sold-to-open) this put option on October 20, 2017 for a sale price of $.25 per contract, and now we took gains by buying it back (bought-to-close) for $.06 per contract. With the fill at $.06, it locked in a gain of $.19 per contract ($19 for every contract traded) and a return on margin (ROM) of roughly 5.3% in just over two month's time. If you like to annualize, that's roughly a 27.5% return. To understand how the margin works and the calculations involved, here's the breakdown: Whenever we sell an option contract, your broker will require you to maintain a "margin requirement". The margin requirement is made up of funds that are already in your account and will need to be held aside while the trade is active. You are not borrowing money from anyone nor are you paying interest to anyone. Some people can confuse the margin requirement with "trading on margin". They are completely different things. We