Gary Hoch, re: can you explain what is meant by,
1) "Long 8 SEP50C" or
2) "Short 2 SEP40C"?
Does this mean buy,
1) buy 8 sep50 call contracts
2) sell 2 sep40 call contracts
If so, how did you come up with the specific number of contracts?
Yes. I'm on the run today, but I'll post the math over the weekend. BTW, I don't highly recommend the above trade. I believe your best bet is with incremental call purchases. (And, yes, I'd advise selling nearer term calls for protection, income.)
If I could impress only one thing, it is: Think in terms of compounded profits!
Since you believe ASND will rise by 15+pts within 9 months, you should not be satisfied with one play. Establish a position that is flexible and prepare to evolve it. Each series (MAY, JUN, SEP, etc) represents incremental opportunity.
I'm headed to Marin this afternoon, so it'll probably be Sunday before I can offer detailed math. Good luck. |
