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IPRE-Paramount

06/18/08 1:57 PM

#6879 RE: IHUBfan #6877

I don't have it now . But Options in general are only interesting for volatile situation like cases of panic sell-off or panic rally , other than that is risky.

Also this scenario is interesting : let's say you have a stocl A price at $20 , you buy a Call with ex.price at $18 for next six month expiration. Maybe your call costs you $4, which make you target price over $22 (18+4). This is worth only if you see your stock A should be worth intrinsictly $28 in next six month. =>then you may plan pay your call bet for $400 (100x$4) and then at exp date your call is worth $1000 if stock A rises to 28 as predicted.
So what is profitable or what is the risk ? instead of blocking $2,200 to made $600 in six month, Your call cost you only $400 to make you a +150%. But Risk is that you can lose all the $400 if your stock sink to $18.

SO first of all : Choose a stock with a clear up trend . Draw a line/projection where should be your stock in next X months. Then check the 'in-the-money' call price , if it is not too expensive, you buy it, if Not then forget it.

As i got burned really with options, I like only to play the near expiration date call options like :ex: AGU, WLT , if you bought out-of-money call ($5 higher than the pps last week), you could have made +500% to +1.000% as those stock has risen more than $10 in mean time. And this is a lotto play for small amount like $100-$200 stake.

for V : i can't call for the direction. Chart is neutral.
























The reason I need Good DD's :