AI
Tuesday, March 25, 2008 1:04:27 PM
POT Options for April:
A nice way to play options is to look for stocks that you think may be in the next hot sector. Personally I like 3 sectors right now to lead us back to a full bullish market. Those sectors are the financials, tech and the AG sectors.
Today, I was able to sell to contracts I bought yesterday at the early morning run and waited to get back in later if the price was right. POT is one of those plays you just don't want to miss right now, IMO.
I just picked up some April $155/Calls @ $9.80 ($980.00) a piece. As most of us can see POT had a nice run and is holding it's gains which currently sit a little over $5. My chart below shows what will happen if POT has another $5 day tomorrow or relatively soon. Remember we are on a time clock now that we have the April expiration date.
The top two (2) circles shows that if POT has a PPS $160 my contract will have a gain of over $225 a piece! That's about a 22% gain in a day! You can see that as the PPS goes up the options prices really start to take off!
What's really important is the "Delta" figure. It currently sits at about 59 (58.91). This means for every $1 the PPS of the stock goes up our contracts will go up about $0.59 ($59.00). Note, the faster the PPS goes up the higher the "Delta" figure will go up.
Well, anyways, here is the chart for your viewing.
Boca_Bobby
A nice way to play options is to look for stocks that you think may be in the next hot sector. Personally I like 3 sectors right now to lead us back to a full bullish market. Those sectors are the financials, tech and the AG sectors.
Today, I was able to sell to contracts I bought yesterday at the early morning run and waited to get back in later if the price was right. POT is one of those plays you just don't want to miss right now, IMO.
I just picked up some April $155/Calls @ $9.80 ($980.00) a piece. As most of us can see POT had a nice run and is holding it's gains which currently sit a little over $5. My chart below shows what will happen if POT has another $5 day tomorrow or relatively soon. Remember we are on a time clock now that we have the April expiration date.
The top two (2) circles shows that if POT has a PPS $160 my contract will have a gain of over $225 a piece! That's about a 22% gain in a day! You can see that as the PPS goes up the options prices really start to take off!
What's really important is the "Delta" figure. It currently sits at about 59 (58.91). This means for every $1 the PPS of the stock goes up our contracts will go up about $0.59 ($59.00). Note, the faster the PPS goes up the higher the "Delta" figure will go up.
Well, anyways, here is the chart for your viewing.
Boca_Bobby
Boca_Bobby
Mom said there would be days like this!
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