| Author | Message | ||
     Kubang Celebrity Bewarse Username: Kubang Post Number: 38117 Registered: 09-2011 Posted From: 161.141.1.1 Rating: N/A |
lets see Oct expiry which is on 20th and 30 days away. $163 call ask is $3.65 at this moment while stock is at $162.58; premium for put at the same sp is about 30 cents higher ($3.9) this premium for near term options is not cheap by any means. assume you buy today and stock moves up to 170 by expiry date which makes the call worth $7 or slightly less than a double. not a compelling return given the risk of losing everything if it drops or stays at $163 Ignorance is bliss |