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Comments:
<0> you gotta work it out
<0> fast
<1> even worse again.. Butterfly
<1> 3 option contracts
<0> dont know that one yet
<1> I agree.. highly leveraged
<1> how about unlimited loss (out of the $) in long PUT options?
<1> scary!
<0> !calc (((1.50 * 500) + (10.99 + (.75 * 5)) - 500) / 500
<2> error calculating '(((1.50 * 500) + (10.99 + (.75 * 5)) - 500) / 500' (syntax error in expression "(((1.50 * 500) + (10.99 + (.75 * 5)) - 500) / 500")
<0> heh
<1> instant margin call
<0> !calc 10.99 * 3
<2> 10.99 * 3 = 32.97
<0> err
<0> !calc 21.98 + 7.5
<2> 21.98 + 7.5 = 29.48
<1> * the price of per 100 lot option contract
<0> !calc 29.48 / 500
<2> 29.48 / 500 = 0.05896
<0> !calc .0589 * 100
<2> .0589 * 100 = 5.89
<0> out 5.89%
<0> before it gets going
<0> !calc 21.98 + (.75 * 20)
<2> 21.98 + (.75 * 20) = 36.98
<1> back in Canada at my other home, i've got my old finance text books there - one that covers derivatives only
<0> !calc 36.98 / 1000
<2> 36.98 / 1000 = 0.03698
<0> 10 contracts
<0> cool
<1> i don't claim I know much as it's been like over 7 years since university
<0> !return 1.5 2.5
<2> The Return rate for 1.5 -> 2.5 is: 66.6666666667%
<0> !calc 1000 * .6667
<2> 1000 * .6667 = 666.7
<0> !calc 666.7 - 36.98
<2> 666.7 - 36.98 = 629.72
<0> !calc 639.72/1000
<2> 639.72/1000 = 0.63972
<0> !calc 629.72/1000
<2> 629.72/1000 = 0.62972
<0> make 629.72 after commissions
<0> 62.97%
<0> versus....
<1> uhm.
<1> what about 1.5 -> 0.25 ?
<3> !q GOOG
<2> GOOG - GOOGLE- 444.31 -22.2001 -4.75% (0511176) Daily Range: [----------] 7% (443.25 457.36) Yearly Range: [++++++++--] 89% (172.57 475.11)
<0> superbq, its possible
<1> then how much you be paying?
<3> !q PLC
<2> PLC - P L C SYSTEMS INC- 0.54 +0.01 +1.89% (2900) Daily Range: [+++++-----] 50% (0.52 0.56) Yearly Range: [+++-------] 33% (0.45 0.72)
<0> !calc 500 / 17500
<2> 500 / 17500 = 0
<0> !calc 500 / 17500.00
<2> 500 / 17500.00 = 0.0285714285714
<0> so make 2.86% on $17,500 or make 62.97% on $1000
<0> on the same price movement
<0> that you ***umed
<3> !q klge.pk
<2> KLGE.PK - KLEGG ELECTRONCS - 2.14 -0.48 -18.32% (098744) Daily Range: [+++++-----] 52% (1.40 2.81) Yearly Range: [++++++++++] 1141% (0.20 0.37)
<0> wait
<0> i forgot commissions
<1> yep
<1> the cost of the contract
<0> no
<0> that's factored in to my optionis math
<0> i forgot the comm. on the stock
<0> !calc 500 / 17521.98
<2> 500 / 17521.98 = 0.0285355878731
<0> 2.85%
<0> lol
<0> .01% differenc
<1> peanuts
<0> yeah
<0> !calc 629.72 / 500
<2> 629.72 / 500 = 1.25944
<4> ****, i should have shorted google last week
<1> ok
<1> what if the option price is like 7 or 8
<0> different story, still, on 10 contracts, or 50, or 50000000000, ***uming your price movement is what you are predicting for tomorrow
<0> it's the same
<0> options
<0> is greater reward
<1> or greater loss
<0> at less theoretical risk
<1> i dunno about less risk
<0> !calc 1000 / 17500
<2> 1000 / 17500 = 0
<0> !calc 1000 / 17500.00
<2> 1000 / 17500.00 = 0.0571428571429
<0> if you're willing to lose 5.7% of 17,500
<1> what's this 17500?
<0> the cost of 500 shares at 35
<1> k
<0> sooo
<0> if you're willing to lose 5.7% of 17,500
<0> which is $1000
<0> in this case
<0> using yesterday's prices for discussion's sake
<1> the price would have to move 2 points
<0> why 2?
<1> 500 shares x $2 = $1000
<3> !q PLC
<2> PLC - P L C SYSTEMS INC- 0.54 +0.01 +1.89% (2900) Daily Range: [+++++-----] 50% (0.52 0.56) Yearly Range: [+++-------] 33% (0.45 0.72)
<0> $2?
<0> what is $2
<1> a 2 point movement
<0> you lost me...
<1> you say 5.7% is $1000 ?
<0> 5.7% of 17,500 = $1000
<3> when the market open 2day ?
<0> or
<0> $1000 is the price of 10 contracts
<1> k.
<0> so if you're willing to accept a loss of 5.7%
<0> on $17500
<0> wouldn't you be better off going into 10 contracts for that same risk
<0> to earn the same reward + .25 on every dollar
<0> ?
<1> no because I know it can flop out of the $
<0> theoretically speaking
<1> as much as it's magnified when you're in the $.. likewise can be leveraged when out of the $
<0> well, what happens if you buy $17,500 worth of yhoo @ $35.00 and you lose that same $1000 then decide your short term trade went wrong
<1> i'll just wait
<0> isn't that the exact same as buying the calls
<0> for short term?
<0> i mean
<0> short term in my mind is < 5 days
<0> one day even
<1> typically you can't get much movement in such a short term
<1> when's the strike date?
<0> !return 35 36
<2> The Return rate for 35 -> 36 is: 2.85714285714%
<0> feb.06
<0> the stock can rebound > 2.86% tomorrow
<0> it has the potential
<0> if you say
<0> so
<1> what's the cost of the FEB06 Long CALLS ?
<0> and if 2.86% of movement is all you're looking for to make $1.25 per dollar on your $1000 as opposed to $1.00 per dollar on your $1000 for the same amount of risk
<0> in this discussions, 1.50
<1> 100 lot
<0> yah
<1> $150
<0> doh
<1> how many contracts we buying?
<0> 10
<0> should be 1500
<0> hrmm
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