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farooq

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farooq

Re: anon.10 post# 230

Monday, 05/11/2009 10:54:59 AM

Monday, May 11, 2009 10:54:59 AM

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Stupid is one who don't know and do not ask, do not assume but ask.

You are correct 57.50 would be the strike.

For your earlier question how much option will increase I can not answer that question, again time, price, and volatility will come in equation. Options are priced on those elements.
You will still get significant amount for time decay. You are lending money at high rate that is the simplest concept about options, why high rate because buyer is leveraging and you are taking down side risk, so he is ready to pay premium for eliminating down side risk.

Farooq

Farooq
This post is for educational and amusement purposes only, and is not to be interpreted as trading advice. Consult your financial adviser before placing any trade.

http://investorshub.advfn.com/boards/board.asp?board_id=4514

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