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Well, hold it with that option advice. If BORL goes to 8 in July, most likely there will be extremely little time value left, and mostly intrinsic value. So, the option will be worth around 3 1/4 --- if the stock hits 8. Pay commissions, figure in time value, don't forget short term capital gains taxes, and maybe you clear .50 or .75. That's not very much for this level of risk and uncertainty. If the stock goes to 7, you will lose money. Obviously, if it goes way up, you will make more, but jeez, if you are reading this and are new to options, you might be happier finding a stock that could have more upside in a short time frame. |
