Somebody correct me if I am wrong....TOM - ANYBODY !!
Looking at Nokia and I was glancing thru their calls. While trading at $57, the January 45's were only $18. As I see it, thats a pretty low premium. I can buy the stock for $12 less then current price.....9 months from now, to boot. If I subtract the $12 from the premium of $18, I show a premium of only $6 for Nokia in January. Now, the bottom line of course is with the stock trading at $57, I am agreeing to buy it in January for $45 + $18, or $63. Again, that is only $6 higher then todays current price and I have 9 months to see what the stock will do.
Am I missing something here ??? I bought a couple already, but am considering buying more. The scary thing is only that it almost looks to good to be true. Nokia will always be a big player....heck, I watch all the young kids that work for me all wanting to buy nokia phones, because it is "the cool phone". In any event, Nokia should always be a big player...hopefully buying chips from the Q, but regardless...do those January 45's not look good ?? Somebody tell me what I am missing here.....Nokia, in 9 months, needs to only be about $5 higher from current price for me to break even. I would think in January, we would be closer to $90 or maybe higher.
Thoughts.....anyone???? Everyone ????? |
