Return On Investment (R.O.I.)

I have used the term ROI on one of my option trade with BCM which you can see on the lower left corner. So what does ROI means? It means Return on Investment which is how much return you get from your investment compare to the capital you used as investment. Let say I invest $100 and my ROI on investment is 20% which mean I profit $20 from my original investment of $100. And on my BCM option trade, I calculate the ROI a bit differently. As every time I write a Put option, I always put up the capital required if my option does get exercise and I need to buy the share at that price. So for my BCM trade, my capital outlay will be $9 per share. That i will put is as my original investment. My return is -$0.03 when I closed the trade. So the ROI will be -0.03 divided by 9 times 100 which is -0.3%. Which is minimum compare to the potential profit I can get with Pacific basin stock. That's why I do the switch. "One of my opinion about wealth creation is you get to be flexible in your approach to investment. "

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