Let's revisit this trade/strategy from 4.5 months ago, as its working.
For the sake of argument, let's say we bought and wrote 100 calls and 100 puts as an example since those are nice round numbers.
We wrote (sold short) 100 VFF 01/15/21 $4 puts at $1.05, which paid us $10,500.
Using those proceeds (other people's money!), we bought 100 VFF 01/15/21 $6 calls at $1, which cost us $10,000.
So we got PAID $500 to put this trade on, as we actually netted $500!
We could cover the $1.05 puts for .10 right now, which means we would make over 90% on that short. Of course I am not covering them right now, I am going to let them expire worthless in January, for 100% profit ($10,000).
The VFF 01/15/21 $6 calls are now worth $3.50, which means we are up 250% on them, as they are now worth $35,000.
We would make $35,500 overall if we exited the calls right now, as a reward for letting someone hand us $500. One could say our return is infinite.
For perspective, if we had paid $1.05 for the calls and sold the puts for $1, which means that it would have COST us $500 to put this strategy on, we would have made 7100% in 4.5 months (as opposed to infinity).
Hopefully my math is right, we are already into the '42 tonight for hitting a milestone in the main account thanks to VFF and Galaxy!
