Sold AMED September $40 calls @ 55 cents

I'm trying to figure out why the profit was so low. Just called Scottrade and they charge $1.25 per contract + $7 per trade. I bought 10 contracts and sold 10 contracts (20 contracts times $1.25/contract = $25 + $14 in buy/sell commissions ($7/trade times two) for a grand total in commissions of $39!! I made $50 off the quick trade but the commissions are so high I really only made $11. I guess when you are only willing to risk $500 at the most in options (because they can expire worthless) a 10% gain is nothing after commissions. I will keep a close eye on these calls because they should move to about a dollar a contract if AMED can get to the $37 range within two weeks....
Last edited by thegreatgate; 09-03-2009 at 11:23 AM.