Any options thoughts on how to jump in here - I do not want to get suckered in but feel that I will more mad if it runs to $250 and I am not in
Is there anyone good with options who would be willing to offer thoughts on how to buy into this now with 10-12k
Appreciate any serious replies.
Here is one you might want to do a little research on: CMG - Chipotle Mexican Grille. Went up 180% this year. I think it could go up a minimum of 40% thru 2008 and maybe 100%. Stock is at $150 and my future range would be $210 to $300. Jan 09 option play?
You got me stumped on that one. I really just learned on my own. I will give you this though. Look for an option that gives you your lowest realistic exit point. For example the $220s at $14, means the stock has to hit $234 for you for sure to get your investment back out. Of course, it doesn't really have to hit $234 because the option will have some speculative value i.e. with the stock at $230, the option might be worth $20. But what I am saying is look for an option that you can get your money back at the lowest point but still give you some realistic opportunity to triple or more your bet.
Hmmm, that's a tough call. You are looking to double your money $14 investment to $30 net option value if the stock nears $250. Those options prices seem a little steep. Historically Aapl has dived off after earnings in Jan BUT this year MAY be different if there is news of the 3G phone and the Iphone revenue stream. I'd really want the potential for at least a tripling of my option bet, and it is that, a bet. The way I look at it is, with the odds 50/50 that you loose all of your money or triple it, would you place that bet? And the answer is, of course.
Great - really appreciate your time in middle of day
One of the toughest things in learning about options is deciding what is fair value on options for a stock like this
With regard to earnings, would April be safer (just in case of disappointing guidance) - say $220 at $14