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  • I just picked up some LEAPS on TGT. I'm also long
    stock. I guess becuase we have a pretty low beta the
    time/premium is low. I see a huge bargain. I bought Jan '01
    (27.5) for 2 3/4. Those calls should be in the money by
    next week. If TGT hits 30 in the next 5 months it's an
    easy double....For those that wonder about a dabble in
    options this one seems like a great on to start with.

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    • straddle or combination candidate. When a stock
      hits its year low (or high for that matter), its a
      pretty good bet that its not going to stay there for
      four months. If you buy an equal number of calls and
      puts with the same expiration date around the current
      trading price (ie. 27.5 Jan calls, 25 Jan puts, you can
      essentially buy insurance against guessing wrong. There is a
      risk that they will all expire worthless, but, if
      you're bullish on the stock, set a limit to sell your
      puts at the total purchase value of all your options
      plus your commission. That way you get your money back
      and still have your calls if the stock price declines
      dramatically. Options are risky, but they are not difficult to
      make money on if you have a strategy. Good luck!

    • you are incorrect. at expiration, the intrinsic
      value and total value of the option will be 2 1/2
      causing you to lose 25 smackers per option. it better hit
      30 well before january 2001 if yopu really want fair
      compensation for the risk you are taking.

 
TGT
71.73+0.68(+0.96%)Aug 24 4:02 PMEDT