please help me

G

Gueco

Hi everyone

Lets say I happen to know that a stock that is currently at $50 is going to hit $55 over the next month.

Now I want to chose which option strike would be the best. I'm looking for the biggest % return between today and the day it hits $55.

What tools do I have available that can help me? I would prefer free tools but any help would be great.

thanks
 
Quote from Gueco:

Hi everyone

Lets say I happen to know that a stock that is currently at $50 is going to hit $55 over the next month.

Now I want to chose which option strike would be the best. I'm looking for the biggest % return between today and the day it hits $55.

What tools do I have available that can help me? I would prefer free tools but any help would be great.

thanks
More...

tools
free tools
% return

just buy the stock and make life less complicated!
 
Quote from Gueco:

Hi everyone

Lets say I happen to know that a stock that is currently at $50 is going to hit $55 over the next month.

Now I want to chose which option strike would be the best. I'm looking for the biggest % return between today and the day it hits $55.

What tools do I have available that can help me? I would prefer free tools but any help would be great.

thanks
More...
http://www.cboe.com/LearnCenter/software.aspx
 
Gueco,

If you really "know" that the stock is going to hit 55 in 30 days, you can.

1.- Buy 1000 or as many as you possibly can, $50 calls now.

You are risking 100% of capital invested for an 400% return approx if you are paying $1.00 for the calls.

or if you want to be even more aggresive and you have enough money for margin req...

2.- Sell 1000 55 puts and buy 5000 50 calls with the money received from the puts.
 
Quote from iceman1:

tools
free tools
% return

just buy the stock and make life less complicated!
More...


Either help the guy or don't respond .

What a TOOL!
 
Firstly: you don't know that it will hit $55 over the next month. So be aware of your risk. Use money management.

Secondly: plug several scenarios into an options analyzer and compare the outcomes. For front or back month horizon, usually you get the best reward / risk buying in the money options, or verticals with the long leg in the money.
Quote from Gueco:

Hi everyone

Lets say I happen to know that a stock that is currently at $50 is going to hit $55 over the next month.

Now I want to chose which option strike would be the best. I'm looking for the biggest % return between today and the day it hits $55.

What tools do I have available that can help me? I would prefer free tools but any help would be great.

thanks
More...
 
You must log in or register to reply here.
Back
Top