I am looking at buying 10 SRS FEB 65 Calls at about 5.50 tomorrow. Since this has gone down so much without any news, do you guys think it is a good buy? I did see in an earlier post from Kli that he bought bunch of them today. Any suggestions?
FWIW here's my post on the same topic from last Friday
all things being equal, you need SRS to hit 70 or so to break even within about 6 weeks, and any increase over 70 you profit IF you sell above strike (if it drops again, you're out of the money... and can lose it all) (I know, you can sell early etc) If SRS hits 60 next week you've probably doubled nicely and I hope it does.
if SRS hits 70 any time in the future, and you bought the ETF itself at say 50, you made 40%, which is huge by nearly any definition of a trade
you're essentially buying options on fund that already has the volatility of an option with this.
I dont buy calls...i am a buy and hold bagholder...bot srs more today and will add appropriately...got enuff now to sink a battleship eeeeeeeeeeeee i have played this market the same way for over 18 mo and will wait for hell to break loose again......