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To: venividivici who wrote (134467)	7/16/2006 5:18:30 PM
From: Cisco	Respond to of 209892

Thanks for clearing that up for me. I was thinking in one dimension and not considering leveraging more contracts. I guess if equal amount of funds where leveraged in the two positions it would depend upon how bullish you are whether you would be better off with the longer or shorter expirations. Between the expiration prices of $36.65 and $38.57 you would be more profitable with the longer Jan 38 calls, below $38.35 the shorter Aug 38 calls would expire worthless, and for $38.58 and above the shorter Aug 38 calls would be more profitable. Personally, I would have to be fairly sure of the bullish movement to leave myself exposed between $36.65 and $38.57. I guess my risk tolerance is not quite that high yet.<g> When purchasing equal number of contracts each, it would appear that the longer expiration is the clear winner. Equal amount of funds analysis: