mesayah
658 posts
msg #86252
- Ignore mesayah |
1/14/2010 12:12:59 PM
Let's say i buy ZLC now @ 2.95 how would you play it if you thought it would go to $5 within 30 days. What kind of return can i expect?
I have played options just not an expert.
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karennma
8,057 posts
msg #86272
- Ignore karennma |
1/14/2010 1:24:03 PM
M:
**IF** ZLC doesn't get to $5 within 2 wks., you can kiss your $$ good-bye.
:>)
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bankwalker
30 posts
msg #86273
- Ignore bankwalker |
1/14/2010 1:26:30 PM
Well you can buy the feb 2.50 calls for about .90 and they will be worth 2.50 in 30 days if ZLC is at 5.00 at expiration in 36 days. That is 1.40 gain on .90 risk. It has unlimited upside if it goes above 5.00 It must be 3.40 or above to break even.
Or you can sell feb 5.00 puts for about 2.30 and keep it all if your thesis is correct. Max loss 2.70 if ZLC goes to 0.
These are many spreads you can build, but based on 5.00 target in 30 days, I'd use one of the above. Keep it simple.
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karennma
8,057 posts
msg #86274
- Ignore karennma |
1/14/2010 1:26:52 PM
M:
Let's say you buy the $2.50 calls TODAY @ 0.55.
If it doesn't spike up within 2 wks. your options won't be worth jack.
JMHO.
:>)
(let's check it in 2 wks. and see ... Jan 28th)
:>)
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mesayah
658 posts
msg #86275
- Ignore mesayah |
1/14/2010 1:32:06 PM
ok. i'll just stick to the old fashion way... up 2500 thnx to MESA and short SEED NVDA MGPI
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gmg733
788 posts
msg #86304
- Ignore gmg733 |
1/14/2010 5:16:56 PM
For cheaper stocks I simply buy stock. You don't have to worry about the Greeks that way.
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