July options expired yesterday, so let’s wrap up the Plan B examples that I wrote about in June.

iShares FTSE/Xinhua China 25

On June 22, I outlined Plan B for FXI.

FXI closed at $138.24.

The typical trader using Plan A would have made a 14% return before commissions:

$138.24 close - $119.85 purchase price + $1.45 cost of put = $16.94 gross profit
$16.94 gross profit / ($119.85 cost of shares + $1.45 cost of put) = 14% return, before commission

Our Plan B with PowerTools would have made a 172% return before commission:

$138.24 close - $110.00 strike price = $28.24 profit
$28.24 profit / $10.40 cost = 172% return, before commission

Goldman Sachs

On June 26, I outlined Plan B for GS.

GS closed at $205.94.

The typical trader using Plan A July 210 PUTS would have made a 7% return before commmissions:

$210 strike price - $205.94 closing price = $4.06 intrinsic value - $3.80 cost = $0.26 profit
$0.26 profit / $3.80 cost = 7% return, before commission

Our Plan B with PowerTools would have made a 40% return before commissions:

$230 strike price - $205.94 = $24.06 intrinsic value - $14.50 cost = $9.56 profit
$9.56 profit / $14.50 cost = 40% return, before commission

Our Plan B with PowerTools July Bear Put Spead would have made a 187% return before commissions:

$230 strike price of long put - $210 strike price of short put = $20.00 profit
$20.00 profit / $10.70 cost = 187% return, before commission