Buying calls

[jwdjrs]

Does anyone here know anything about buying calls ?? I own visa stock, but now I want to buy some calls. I am very bullish on visa the next couple of years, And just wondering what calls you would suggest buying ?? THANKS

[Chan]

You want LEAP options then .... Jan. 09 or Jan. 10

while holding a LEAP option you can write calls against it simular to Covered Call except you don't own the stock.

The problem is the volatility is high and the option prices are high.

It has little spikes and if you follow the stock option daily you will get your opertunity to get it cheaper... if you have patience.
But owning a LEAP requires same...

[Chan]

I'll go over a few things regarding option price...

Delta - probability of the option expiring "In the money" you would choose a delta of 70 or higher than a option with a delta of .50
In addition a option with a delta of .30 is out of the money and its price is composed solely of time premium
The volatility - Is "implied Volatility" currently high or low for a given security based on it's own historical range?
this tells us if time premium is high or low.

Sometimes waiting for volatility on calls or puts to get a better premium does achieve the goal. it can result in missed opportunities.

with current situation in these stocks being hot, the Volatility can stay high for a long period.

So buying deeper in the money is the best solution.

[jwdjrs]

Originally Posted by Chan

I'll go over a few things regarding option price...

Delta - probability of the option expiring "In the money" you would choose a delta of 70 or higher than a option with a delta of .50
In addition a option with a delta of .30 is out of the money and its price is composed solely of time premium
The volatility - Is "implied Volatility" currently high or low for a given security based on it's own historical range?
this tells us if time premium is high or low.

Sometimes waiting for volatility on calls or puts to get a better premium does achieve the goal. it can result in missed opportunities.

with current situation in these stocks being hot, the Volatility can stay high for a long period.

So buying deeper in the money is the best solution.

Thanks for the help. So kinda like a Jan 09 120's ?? I'm just looking at getting my feet wet with about a thousand dollars to start, not worried about losing money if it helps me learn.
I already own around 365 shares that I bought in the 60's, And now I want to buy some calls, I'm pretty bullish on the stock . Thanks buddy

[Chan]

the delta is .33 on those and the Implied Volatility is way to high.
Wait you might be able to get those for 2.50 - 3.00

The option is basicley over priced. Time is on your side and you should definitly care about losing money.......

[jwdjrs]

Originally Posted by Chan

the delta is .33 on those and the Implied Volatility is way to high.
Wait you might be able to get those for 2.50 - 3.00

The option is basicley over priced. Time is on your side and you should definitly care about losing money.......

Chan, Are there any Visa calls that look worth buying at this point ??

Are there any books or dvd's that you would suggest me buying to learn more about buying calls ??

[MC]

I dunno if this is an option, no pun intended...
But maybe we could have a options lesson some weekend in the chat box with you Chan?

I am very interested in options but have no clue where to start. The basics are obvious but other than that, the delta, alpha etc... I just have no idea what I'd be doing. I'd love to see a options boot camp over here where I can learn something focused like that.

I'm gettin excited already, hedging and general options are something I need to learn, and why not learn from one of the best I know.

PLEASE

[malice]

if you still down for that MC, im game, im not the best, but i know a thing or 2