Nitetrader: The Sept contract expires in 4 days. You are looking for a 5+ point move in that time. Please save your money. I would be surprised to see BA anywhere near 105 by next month expiry. It is sitting at a resistance turning point. May go down a bout a point in the next day or two, we will see. But I can all but promise you it will not reach 105 by the end of this week. Selling naked puts is technically no big deal if stops are in place. Yes better prob of taking profit, BUT beginners should not do this as they expect stock prices to move more than they will. I thought the same when I started options. IF IF IF IF in this situation you knew it would hit 105 by Fri, then your best bet is to buy the 100 call str8 out. BUT BUT BUT BUT it is not gonna happen. Buy now and loose time everyday, not to mention price movement slipping away from the position. If your still bullish - then buy the Oct ATM call and hope. -This is not investment advise. Just an "if your not gonna listen to anyone" mentality, then that is what you could investigate. But I think you should not buy any calls on BA anytime soon. Hope that saves you some tuition.
I agree i would not be wise to buy any calls now. Rather I would have bought the october 100 strike when the stock was trading at ~ 94-95 when I got my buy reading. I believe those calls where at $1.40 ish. Would of then sold them at 3ish when it was o/b and the head and shoulders formation was confirmed (right shoulder at 99) Your right BA is most def headed down to the low 80s before not too long. Apologies if my options lingo is not up to scratch as I am still learning.
I bought some a while ago 2 weeks Now Target are ----Sell---- ---Buy--- 107.1993 ------ 93.0507 110.1604 ------ 90.0924 113.1216 ------ 87.1341 ------ Date ------ 1/4/2008