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Politics : Ask Michael Burke

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To: Shane M who wrote (108572)7/27/2007 10:12:05 AM
From: Knighty Tin  Read Replies (2) of 132070
 
Shane, Call options are not the best play here, as the premium is high enough to make the gain from a 1.3% move negligible after commissions and trading costs. If I were convinced that this move would take place, I would sell in the money put options. But that is very high risk for a fairly low reward. The same goes for buying the Spy. Putting up 147 and change for a shot at 2+ points is one of those bets where you have to be right every time.
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