Options Think Tank

[Breakout]

Real gutsy move is buy the 390C @ 0.20 and pays about 0.25 per dollar or for a $40 jump in price that option would be about be around 10.25. The 310p 0.75 ($75) would become worthless So your calls become $1025- $75.00 (puts) - $45.00 in trading cost = 905 or 5x you investment.

The puts would probably go from 0.75 to 7.50 or $750 - the call $20 - 45 comm..

You really want to get a feel for what a $30 dollar move did look at the thurs close to the friday close when the price dropped $30.00.

The risk is you get 1/2 and loss some on both sides and the other risk is the pusts have high premiums so a fast sell would be needed because those premiums will be sucked out really fast after earnings. Appl taught me that. Opens sell dont think if it bad. If it good then you might see $2 roll in on top of estimated price as people pay more for it.