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Re: Briboy post# 477

Wednesday, 01/26/2011 10:22:26 PM

Wednesday, January 26, 2011 10:22:26 PM

Post# of 36859
Option exercise warm up example.

Lets say you felt like holding it for: 1 month longer. Ok.

you could get a FEB $7 PUT...and asume it may drop .38 cents in the next 30 days, approx. No biggy, small discount.

However, this "hedge" / "option" while you wait for the upside... would actually provide a 150-200% gain, ironically.

FEB $7 PUT is @ .16 (30 ish days)
MAR $8 CALL is @ .27 (60+ days time)
MAY $9 CALL is @ .28 (120+ days time)
==========================================
For around .70 you could hold all 3.
Current $7.39 http://stockcharts.com/h-sc/ui?s=amr

About a 9% Premium... for a 3x gain potention from EACH/ANY target if hit within parameters. Potential: 9x gain, if stock swings to and fro over the next 4 months, basically sums it up.

(while on the surface the moves only represent downward of 5%, and upward of 9% and 15% for "normal" gains/losses.

OPTIONS Provide: possibility of 900% pps reaction gains in the same 4 month time period.

Hope this is at least intriguing.
Maybe, c/p this article and *study it.

Godbless. -V. =)



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