# Estimating Returns on Insurance Agent Trades

As you search for the right Insurance Agent Trade, you will sometimes ask yourself something like the following question. “If I can get 46 cents for a 60-day Insurance Agent Trade, what is my monthly rate of return?” You can, of course, calculate that, but it can be a bit tedious to do it for several trades. And what if you ask a question, “I want to get 4% monthly for a 90-day trade. How much credit do I need?” Again that can be calculated, but asking the question backwards like that makes it more difficult.

So I made the following chart. For example, if you want a 90-day Insurance Agent Trade that is \$5 wide and that makes you 4% per month, you will need to get 54 cents in net credit. If you get 46 cents net credit on a 60-day trade, that will give you a 5% monthly return rate.

What if you get 56 cents on a 72-day trade? That looks like about 5% if you read between the lines. You can calculate the return as follows:

Monthly Return = (net credit / (\$5 – net credit)) x (30 / days till expiration)

Monthly Return = (.56 / (5.00 – .56)) x (30 / 72) = 5.3%

Refer to this chart when you are setting up your trades and it will help you quickly estimate the target credit and return rate for your trades. You might want to print it out and tape it to your monitor for easy reference.