What do you think of this play? With all the positive news this stock as seems to stay in the range of 11.75-12.5. I am not sure if the stock is just not getting the play it deserves because of the season and all the volatility people are playing in the financials. I truly think stock will soar closer to X-mas What do you think about the pricing of the 12.5 Jan calls. I am small investor, and the buying the stock it self is too expensive for my port..
where do you think the stock will be in jan? lets say 14 if you purchase the 10, I would sell the 14 to lower your cost I would purchase 11 your a little bit in the money better return and sell 14 thats called a call spread position if the stock pulls back you buy what you sold make a litle profit and keep the 11 until jan or you can sell some more when it goes back up good luck
Thank you both for your opinons. I think I will look at the deeper in the money calls like you both sugjested. I do have a question about selling the higher priced call, will I have to upgrade my margin account to sell those? I am currently only at level 2 margin according to TD
Seems fine. I've been buying calls and common stock. The $10 Jan call will cost you more upfront, but will be less risky. The 12.50 strike would have a higher return if/when the stock begins rising. A much higher return actually.