Mostly: Classical

[huesos]

Anybody familiar with LEAP calls? Does this seem valid?


Today PDG closed at 17.97, lets say 18. The Bid/ask on a pdg January 06 17.50 call is 4 bid 4.20 ask. .The premium is about 3.50, or if you want to be aggressive buy the Jan 06 25 call for 1.75 to 1.95.

Similarly ABX closed 23.78 . The bid ask on a 22.50 January 06 call which would be more than a dollar in the money is 4.70/4.90.

If this is too rich for your blood try the 30 Call at 2.10 bid 2.25 ask.

If either of these stocks were to move as little as 3 or 4 dollars you could double your money. If there were a ten point move in either before Jan 06, you could probably triple or quadruple your money. If gold were to take off and these stocks were to double or triple you could see 10 banger moves. This is really great leverage. In my view the risk reward is so great I can’t pass them up. I will be looking to buy on any correction.