look at it this way
the dollar gain on the options will be similar, lets say 75 cents.
the % gain will be higher for the 20's.
but in my experience, the 15's are just as good of a bet AND are more liquid as well.
again, i don't think 17 gets breached soon nor do i expect a run to 20. it may happen IN may or LATE april, but that is too far along and almost all your premium would be lost. you would be lucky to breakeven at that point.
the 15's on the other would be in the money, and you would have a nice gain. sure, % wise it's less but it's a more astute trade.
Disagree on the earnings, if it was priced it you wouldn't have seen such a drop today. They are expanding, sure, and they are growing, sure, but in a market which will do what?? I don't envision a pay-per-click model working as well in the future as it has in the past.
Look at yhoo for instance. IT's hard to make money in this environment. I would much rather be holding on to companies that can benefit from a weak economy, ie MO.
EDIT: I wouldn't want to be long ANYTHING until be take out 7k and possible 6k on the downside. If i was long, it would be for a swing only. Buy and hold is out of the question until later this year or early next year. |
