How in the world do those people on the leaderboards make 900% returns?
Below is also a link to our explanation on how the ROI is calculated. It goes into details on the equation that we use to calculate the ROI and also a brief explanation on some factors which we have come across using this method. I hope this helps to understand how we are calculating this information for our clients.
TradeKing Customer Support
SP makes some good points. To buy a call or put is a pure gamble that could become worthless, I doubt many would bet their life savings or retirement account.
Also consider there is someone else on the other side of your gamble, the person that wrote the call or put. But they are not gambling near as much, should it reach the strike price they get the profit from the stock and the premium you paid. They can buy the option back, or the stock itself. If you’re wrong they keep the premium and write another one.
If the writer of the call is dealing in well-established companies I don’t see how they can lose. If all goes well I’m thinking about taking the other side, small consistent profits.
As for the leaderboard, I guess it’s ok to look at what is possible and what they are buying, impossible to follow, you will always be looking at the past. I don’t look to the leaderboard for guidance, I come to this forum. Have thought about shutting down the percentages, as I don’t care too much for being on the board, almost like bragging. And I have so much to learn, hardly feel I should be giving advice except in the simplest terms. But I said I would keep my profile public when I really was bragging awhile back in case I crash and burn so everyone can see, and in the future I will refer any requests for advice to this forum.
Proof reading will be a problem.
Remember monkeys need a clean work space too.
Good luck, I have to feed the primates.