I agree with the option expiration strike price theory. But what strike price? Ah, that's the question - if she keeps moving up, the strike it closes around might be 55, or 52.5, etc, or even 60 if we get approval of Vira for Europe. I may look into this further.
Tom - one other nice technique from MacMillian's book - if you've got ITM options, if there's a higher strike price out there that sells for the same as you've bought your lower strike calls, you can effectively remove your investment money out, and have a pure speculation bull spread - no risk. You then have your original money back to do further investments - maybe speculate with OTM calls if it looks like its continuing up, or buy puts at a higer strike and give yourself a straddle for "half price", where you limit how much you can make, but you make money everywhere, no matter what. Just remember to close 'em out before expiration day! I've asked over on the Options for Newbies thread about when people close out options they've sold and have to buy back. No answers yet...Steve - anything to contribute?
AGPH at 52 and change - it had to go up sometime...
Regards,
Randy |
