I'm think about buying some Jan 20 aapl calls, strike of 90. I've been trading for a couple years, but this would be my first options trade. Any thoughts, advice, places to learn more??? Thanks!!
I don't trade direction too often, but you pretty much have to love AAPL stock. It is the strongest stock I see right now. If anyone sees a stronger trending stock, please let me know.
this mofo was in an option iduced coma that lasted weeks. i bot a bunch of 80s/85s nov calls and had to get rid of em cuz vola was just collapsin'. now it has turned around, so it seems, but remember that the options investigation is keepin' a lid on it even tho it appears to be in a strong trend. may get to 85 and gyrate there for an eternity. buy 80calls and play it safe...even nov ones are in a good shape. dec would be perfect imo.
if you don't anticipate much above 100 for your price target, you could also buy a bull call spread: ie buy 1 aapl 90 calls, sell 1 aapl 100. or a ratio spread... buy 1 aapl 90, sell 2 aapl 110 (or buy 2 aapl 90, sell 5 aapl 110) http://www.optionsxpress.com/educate/strategies/ratiospreads.aspx It'll reduce your cost of options. Just in case of a failure of the stock to move in your direction, you lose significantly less. Also recommend http://www.888options.com/ (tools, position simulator) so you can test these strategies out. Remember, don't spend too much on options - think of long options as lottery tickets. Expect them to fail. 90% do.