Sound investing/speculating doesn't have much of a chance of succeeding by wagering your money based on the guessing of the best "vehicle" by anonymous internet characters like me. But if that's your modus operandi, the most bang for the buck will come from the call with the closest expiration and just under your target price. In this case, it's the Feb 125 call.
yes if moving up straight to the target the 125 is the bigger bang and instead of 2 120 you could have bought even 4 125. Considering exp. in 5 days its ones own decision whats more important risk or potential.
Thanks for the reply. It is just exactly what I needed. Thanks to Pita confirming it. I guessed that it can be so but it is necessary analyse - what is complicate. So your confirmation is important for you. I am not as crazy as might you think. If I analyse my trading than I am usually right that this stock will go somewhere. However not picking entry usually exactly at correct moment. For example in this situation - was possible that AAPLE droped bellow 120? For sure. If i will have for example 300 shares my gut will be able go through that at 120 I am 600 bucks down and that it can easily drop in panic further $5 so my loiss will be over $2000? Possible scenario. I know me, I will be not able handle it, my trading is full of examples like this one. But if I purchase direct call in value $1000 i doubt that I can losse 100%. So my real risk in such situation is just 500-800. And that I can handle. But for this risk I want as much potential for gain as possible. With another words, I do not want such position if the price will not hit my target (and in some cases significantly go over) in 2-3 days. With another words my money management can be take very risky position but small. I know me - If I can purchase 10 of such positions I will be right as minimum in 7 cases - and it will more than pay for 1-2 disasters. But I know me - if I will choose JUST ONE than for sure it will be that one that will go against me at most. So I need take many small positions - and therefore I am looking into options. I simple to not have enough money in account take at once 10-15 stock positions. This needs more much buying power than I have. So I am playing with ideat starting more options nothing complicate - just small straight calls or puts (in this market I think puts will be much more common case). And if the position is not going my way nearly immediately than out - one spread here, another there. Atticus, what is g/v (my simple English does not help me guess the sense).
Options are not as simple as stock. You can be right on direction and still lose money. IV changes must be considered along with price and time. A good trading plan and knowledge is needed. Carl
You could quickly gain some knowledge and understanding (or validating some replies from this thread) by following what happened to your sample (AAPL) between 2/7 and today. After all, your assumptions for time and magnitude of the move were very accurate. Attached are fragments of options quotes from 2/7 and 2/8 so you could easily figure out for was the best options play (for this specific time to exp. and vol. of AAPL).