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Strategies & Market Trends : Options for Newbies -(Help Me Obi-Wan-Kenobe) -- Ignore unavailable to you. Want to Upgrade?


To: B4TheBell who wrote (862)5/30/1998 4:34:00 PM
From: Steve Koren  Respond to of 2241
 
Thank you for that information - very helpful!

Steve



To: B4TheBell who wrote (862)6/1/1998 12:12:00 PM
From: cardiologist to be  Read Replies (3) | Respond to of 2241
 
i have a general question that any and all are welcome to answer.

i am interested in buying call options on checkpoint software.

jan 25 calls go for about 7.5-8 bucks.
jan 30 calls for for about 4-5 bucks.

i am willing gamble 5-10k that checkpoint will be over 40 some time in the next six months.

should i buy jan 25 or jan 30?

the breakeven price, to my untrained eye, for jan 25 appears to be 33, and for jan 30 about 35.

why is the premium not higher for jan25?

besides the higher initial investment, is there other downside i am not seeing?

thanks in advance.