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  • Now Is the Right Time to Buy Apple Option LEAPS [View article]
    Would have been a bit better advice yesterday, don't you think? I expect the January 2010 140s to open a bit higher than $30 - yesterday the 130's could have been had for $29 for much of the day.

    I generally wouldn't advise these options so close to the money because of the premiums they command over the price of the underlying (but this is highly dependent on the investor's risk tolerance). That said, I like deep in the money LEAPS as a means of increasing leverage, as long as the price premium isn't too high. Yesterday I bought Jan2010 90 calls for about 12% more than the stock price. Bully for me because I timed it well, but I intend to hold these until maturity so the short term move isn't a huge deal. Looks nice on paper, though.
    Sep 19 08:50 am |Rating: 0 -1
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