SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Strategies & Market Trends : BAK - Investing
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: XoFruitCake who wrote (2689)5/16/2012 9:28:22 AM
From: Zoso_171 Recommendation  Read Replies (1) of 3249
 
Re: NE continues to slide

I actually have had more success with long leap options. I think they work well on the less volatile stocks. For instance the WMT leap options (calls) often trade with almost zero implied volatility. If you're bullish on a particular stock, you can use these as a way to increase your leverage. For example you could pick up the '14 call options at 50 strike for 11 dollars and change instead of buying the stock outright. Of course you do lose the dividend yield.

Anyway, back to NE leap options, one thing that I think is difficult is picking out the right strike price. Let's say I thought NE would return to $40 between now and 2014 and I wanted the '14 call options. Would I be better off picking up the 40 strike or the 35 strike or maybe even the 42 strike....I really don't know. What do you use to determine the best strike XO?

Call OptionsExpire at close Friday, January 17, 2014
StrikeSymbolLastChgBidAskVolOpen Int
25.00 NE140118C0002500014.200.00N/AN/A515
28.00 NE140118C0002800013.900.00N/AN/A248
30.00 NE140118C0003000010.100.00N/AN/A166
33.00 NE140118C000330006.330.00N/AN/A616
35.00 NE140118C000350005.370.00N/AN/A9154
37.00 NE140118C000370005.150.00N/AN/A330
40.00 NE140118C000400003.450.00N/AN/A3127
42.00 NE140118C000420002.850.00N/AN/A23
45.00 NE140118C000450002.390.00N/AN/A238
47.00 NE140118C000470001.970.00N/AN/A534
50.00 NE140118C000500001.590.00N/AN/A4102
55.00 NE140118C000550001.100.00N/AN/A6145
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News