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Stock options

BonerBoy

BonerBoy

New member
I have close to $15,000 that I plan to buy stock options (Leaps), here's what I've been been looking at

BAC JAN 2009 50.000 CALL @6.40 TARGET 60 (bank of america)

PEP JAN 2009 60.000 CALL @10.00 TARGET 72 (pepsi)

MSFT JAN 2009 25.000 CALL @4.70 TARGET 31 (microsoft)

IBM JAN 2009 80.000 CALL @12.00 TARGET 93 (IBM)

PNRA JAN 2009 50.000 CALL @12.OO TARGET 67 (panera bread)

I only have the 15 G's and I'll probaly spread it around on 3 of these leaps,

Are there any traders here that can give a first time options buyer some input?
 
BonerBoy said:
I have close to $15,000 that I plan to buy stock options (Leaps), here's what I've been been looking at

BAC JAN 2009 50.000 CALL @6.40 TARGET 60 (bank of america)

PEP JAN 2009 60.000 CALL @10.00 TARGET 72 (pepsi)

MSFT JAN 2009 25.000 CALL @4.70 TARGET 31 (microsoft)

IBM JAN 2009 80.000 CALL @12.00 TARGET 93 (IBM)

PNRA JAN 2009 50.000 CALL @12.OO TARGET 67 (panera bread)

I only have the 15 G's and I'll probaly spread it around on 3 of these leaps,

Are there any traders here that can give a first time options buyer some input?
Click to expand...
The bid/offer spreads are too big for retail investors to succeed trading options. Also, you're probably buying options to get a leveraged position, not to trade the implied volatility of the shares, which means you're also taking positions in second-order risks you really don't want. Point being, you shouldn't trade stock options at all.

If you want leveraged positions, get yourself a futures account and trade that way. There are single-stock futures on most of the issues you named. That way you don't bleed time value and you get much tighter markets.
 
No, I trade options and those are not good picks and your over paying as far as I'm concerned. Your in the money at least but the time premium is going to get you. MS and IBM are not going where you think they're going. Your B of A is probably your best pick.

I would much rather buy something like PALM 15 leaps @ 1.70. For that matter I bought KRY 2.50 calls@ .75. Jan. 07's, that's risky but it can't go down much, not much of a premium and the pay off can be huge.

I wouldn't do what your doing. Use options to hedge or to full on speculate. Not something in between.
 
kiss your 15 grand goodbye whiteboy if you stick it options. buy the underlying stock if you think it's going to where you want. if it doesn't by the timeframe you thought it did, at least you will still have the majority of your investment (if not more if the price went up). with options if the price goes below your call price, your options are COMPLETELY worthless
 
Boner i just looked your post over again and i didn't realize your going for 2009 leaps. What are you trying to do? I thought you were going after 07 that's why i thought the prices were way to high but that is still not the way to use options. Leaps that far out have to do with large(million share) long term investments or large long term short hedges and there are some possible other uses. Those aren't speculation. Let's take IBM, if it goes up to 93 that doesn't mean your call options are going to go to 25. I don't know if you intend to keep the options till 2009 or what the hell your trying to do.

What exactly are you trying to do?
 
Creepusmaximus said:
My KRY options just started hitting. $1.20 today. Over a 50% gain in under 3 weeks. That's how to speculate.
Click to expand...

How did you find KRY anyway? I've never heard of that company. Is this just a random speculation or did you do some stock screens?
 
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