Interdum stultus opportuna loquitur...

Thursday, October 28, 2004

Lucky I Can Lift Heavy Things...

Note - from June 24th 2009, this blog has migrated from Blogger to a self-hosted version. Click here to go straight there.

There's a saying I've always liked: "I'm not too bright, but I can lift heavy things".

It applies to me in spades at times. It applies particularly when I try to do division in my head.

Somehow I managed to calculate 115/70 as being equal to 1.5... that would be true of 105/70.

115/70 is actually 1.6428 - call it 1.64. That is the current multiplier for the price of the TLT option (the November $89 put, code TLT WK)... so the current gain on that option is a hair over 64%, not 50% as I stated this morning.

Remember that my stated standard operating procedure is always to take half the position off at a raw gain of 100% - which would mean offering half the position at $140.