Stock options

[BonerBoy]

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

Thanks for the input bro, sorry it took so long to get back, ive been realy busy, heres my reasoning for buying options rather than the underlying stock. It's the levarage

Last mo. (8-26) I could have bought 10 contracts of
BAC JAN 2009 50.000 CALL @6.40 TARGET 60 (bank of america)

For $6400, I could have the option to buy 1000 shares for $50 for the next 2yrs & 4mo's
Or at $51.50 I could own 124 shares of the stock

Today one month later (9-26) the option sold for 7.10 and the stock sold for 53.48

The profit on the options $700
The stock only $248

Look at this one
PNRA JAN 2009 50.000 CALL @12.OO TARGET 67 (panera bread)

last mo. (8-26) For $12,000 I could have bought options to buy panera for $50 for the next 2 yrs. 4 mos.
on (8-26) stock sold for about $52 so, for $12,000 I could own 230 shares

Today (9-26) the option sold for 17.2 and the stock sold for 60.11

The profit on the options would be $5,200
The profit on the stock only $1,825

The profits are unlimited and the only risk is, the cost of the option

I picked, Bank of America, Pepsi and Microsoft because S & P has them rated as a "STRONG BUY"

IBM because it is considered by most analysts as undervalued by up to 25% and is rated a "BUY"

Panera I like because of its strong growth forcast, its rated a "BUY" by S & P anylists