AI
Sunday, September 14, 2014 4:11:44 PM
New to options: can I ask the board a question? I have been in stocks for 30 years and am 67 years old, but just started to "dabble" in call options.
It seems that many here are day trading options, but if I may ask a general question to anyone who is nice enough to answer me:
If for example I like a stock that is currently at $6.40, and think it will rise within a year or so, is an "in the money" Mar202015 $5 call for $1.75 a good strategy, or a good buy?
It seems that "in the money" long term calls are good to sell about 3 to 4 months before the expiration date from what I have read, so maybe I would look to sell it around December if it goes up as I think it will into Christmas?
Now "IF" the stock goes to say $8.00 by then, what could I expect the option to sell at if it has a delta of about .80?
Any reply is appreciated.
Thanks.
It seems that many here are day trading options, but if I may ask a general question to anyone who is nice enough to answer me:
If for example I like a stock that is currently at $6.40, and think it will rise within a year or so, is an "in the money" Mar202015 $5 call for $1.75 a good strategy, or a good buy?
It seems that "in the money" long term calls are good to sell about 3 to 4 months before the expiration date from what I have read, so maybe I would look to sell it around December if it goes up as I think it will into Christmas?
Now "IF" the stock goes to say $8.00 by then, what could I expect the option to sell at if it has a delta of about .80?
Any reply is appreciated.
Thanks.
Rayank
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