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Strategies & Market Trends : Classic TA Workplace

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To: Cisco who wrote (134463)7/16/2006 4:25:12 PM
From: venividivici  Read Replies (1) of 209892
 
I was thinking more in terms of how many contracts can be bought for the same amount of capital and how much leverage you'd get from your purchase, but, yes, if you limit the number of contracts purchased to the same amount in both cases, the longer-dated call works best, as your analysis shows.

Incidentally, you could buy close to 50 contracts of the Aug 38 call for the same amount it would cost you for 10 Jan 38 calls and at a closing price of 39, you'd make ~$3200.
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