Viewing a single comment thread. View all comments

iamthemosin t1_iy3hktl wrote

This doesn’t make any sense. How is there $18k profit with a starting capital of $92k and losses/fees of $73k?

−1

MarkVarga t1_iy3og6j wrote

His income is 92k, his cost of revenue is 73k and the difference is the profit basically. When you sell options, you get credit.

3

Effective_Hope_3071 t1_iy3j11y wrote

Because he's selling not buying. He begins at a starting gain of 92K by selling 92K worth of premium and then "loses" 73K when buying to close his positions. Therefore 18K profit. He bought his contracts back for less than what he originally sold them for.

2