u/Specialist-Tax6192

My friend is persuading me to join F&O and I can't disclose what strategy he uses but I feel his return calculation is kinda dodgy. Hear me out,

He trades on a certain exchange, and is into option selling.
His capital on march 31, 25' was 15L
His capital as of right now is 50L
His YoY return is 22%

He has injected 20-25L of capital too

Now please correct me if I'm wrong, since YoY is based on the starting value of his capital his profit should come out to be 3.3L.

However, his broker P&L statement shows his profit is 11L.

Either he's lying or I am wrong in estimating his actual returns.

1 upvote

My friend is persuading me to join F&O and I can't disclose what strategy he uses but I feel his return calculation is kinda dodgy. Hear me out,

He trades on a certain exchange, and is into option selling.
His capital on march 31, 25' was 15L
His capital as of right now is 50L
His YoY return is 22%

He has injected 20-25L of capital too

Now please correct me if I'm wrong, since YoY is based on the starting value of his capital his profit should come out to be 3.3L.

However, his broker P&L statement shows his profit is 11L.

Either he's lying or I am wrong in estimating his actual returns.