leap call option strategy

This is a procedure I do everyday with leap call options

Example Ibm is 124.70 today

Its been moving sideways for the last 2 -3 weeks.

The range has been 123-127.

Unfortunately this means using an option you might make 30-50 a contract.

Options only appreciate 30 cents on the dollar.

So if you bought the option 'Wibaf' the IBM ,Jan 2010 expiration, 130 contract for say 1000 a contract ask price.

The bid price would be about 930-950

The bid price is what you could sell that option for

So if the stock moved 4 bucks to 127 the option bid price would appreciate 1.20 based on a 30 cent on the dollar rise.

It should be 1050-1070 probably 1050.

This 30 cent on the dollar return on the options is the typical rise I have seen over the last 20 years of trading. ON options that are long term and close to the money. IE no more then 10-15 bucks out of the money. So if you go out past 140 you decrease your return possibility.

BUYING a shorter term is a loser bet to me.

So now you made 50 bucks a contract profit. So say you spent 5k and bought 5 contracts,you would make 250 gross about 225 net, based on a Charles Schwab round trip of 10-12 bucks a side. He is MY broker so I know the price.

If you spent 12k for 12 contracts which is what 100 shares of the stock approximately costs.

You would make 600 less comission. ie prob 550 net, On the options.

AS opposed to 400 gross made on 100 shares of stock bought at 123 a share and sold at 127 a share.

This kind of trading requires timing and tracking your chosen stock,very closely.

The reason I like Ibm is there are consistant patterns that show 10-15 buck drops an rises.

That gives me the opportunity to make 3 - 5bucks a contract profit.

So 5k invested could pay back 3-5k profit.

And you only tied up less than half the cost of 100 shares of the stock.

Graph the stock back 10 years and you may see these patterns too

Ibm just pulled back like Cat did

Ibm just pulled back from a high of 125 to 121 as of 4/28/08 and it should have an ex div declared around 6 may. Cat did this same thing and then ran for its ex div day to 86. Now it sits at 83, after dropping to 81 about four days after it declared its ex div day.

I wonder if Ibm will do the same exact thing?

These are trends that are trackable and playable to earn income.

Gold is over 1000 an ounce and gas is near 4 bucks

Many folk say this is a issue cause by the Bushboys. Some say it is not. I say it is and here is my opinion.

Babybush has put our great nation deep in debt with his oil war I call Iraqnam.

Anyone who knows anything about debt, knows the more debt you have the higher interest rate you pay.

But in the case of a country, the interest rate is set by the country so its money value is then affected.

When bushboy attacked Iraqnam .90 american bought 1.30 of euro dollar

and 1 dollar american bought about 1.50 canadian.

NOW 1 euro dollar buys 1.56 american as of 4 25 08 and 1 canadian dollar buys 98 to one buck even american.

This proves that Bushboy has directly caused Our currency to be devalued by at least 50%.

This is also why gold is 1k+ an ounce and oil is 100+ a barrel.

These are basic commodities and as our currency devalues, these commodities cost more.

This is exactly why gas costs 3 bucks more than in 2001. As I remember finding gas costing 92 cents a gallon in Oklahoma in late 2001.

Now what is the main reason that bushboy has let our currency devalue?

OK when Iraqnam started,gold was about 300 an ounce now its 1k+.

The reason for this is to keep china from forclosing on all our debt, that they own.

Those 1k fed notes were worth 3 oz of gold in 2003, now they are worth 1.2oz of gold.

This means that it would be financial suicide to call those notes.

THIS price for so called republican capitalism is why I am a democrat and have no troble being called a liberal.

Its also why I laugh at ignorant repub supporters that call me a comunist or a socialist.

They are too ignorant to realize their own party is ripping them off.

How to use a credit card to get your first 5k investment account

If you have not read my post on how to make 120 a year by paying your bills, Please do so.

Now all you have to do is follow that procedure. to get your 1k balance on your credit card.

YOU then get 4 more cards that have 2500 credit limits.

you use their usual 0% for a year,balance transfer offer, to pay off the card you put your bills on.

Since its a 2500 card, you can send 2300 safely to the bill card. NOW you have 2 months bills covered, as you have a 1k credit on your card.

So you now have 2300 on a 0% card for 1 year. this can be paid off at 200 a month
painlessly. or pay 100 a month and have 1200 that needs a transfer next year.

Meanwhile your cash that you would have payed those bills with is you your bank account.

After 4 months you have 4-5k in there. HEY there is your investment money.

You have 4-5k because you used a second credit card balance transfer to pay 2 more months of bills.

Now at the end of 1 year.YOU need to have gotten 1 more credit card,with a 0% offer.

If you payed 100 a month per card, you now have 1200 on each card at the end of 1 year.

You now have a 5th card with a 2500 credit limit so you transfer 300 to one card so you have a 1k credit. And you pay your bills with that credit.

Meanwhile you take your paycheck cash and pay off the other card.

NOW you have 2300 at 0% for another year.

You either pay it off 200 a month or you flip it 1 more time next year.

You just made your 5k investment money and it cost you nothing in interest.IT just cost you some due diligence and some of your time.

good luck

work at home scams

YOU may have heard of thes companies that state,assemble our products at home and submit them for payment on a per piece basis.

MOST of these offers are fraud. What these companies really want to do is sell you their materials kit, PERIOD.

When you buy the kit and assemble the product. YOU are supposed to mail the finished item to the company to get paid.

BUT THEY WILL NEVER PAY YOU.

Instead they will state that you did not assemble the item correctly.NO MATTER IF IT IS CORRECTLY ASSEMBLED OR NOT.

THEN when you get pissed off and want your money back, using their money back guarantee.

THEY will state you did not send back the complete materials kit and therefore are not entitled to a refund.

THIS obvious catch - 22 is because you used part of the kit to assemble their product.

IE you get ripped off.

OR worse you allow your credit card company to get ripped off, as the floor limit for challenged charges is 50 bucks.

IE they will refund to you a 29.95-39.95 kit fee and not follow up their demand for payment
from the merchant, when the merchant refuses to refund the fee voluntarily.

THIS IS HOW MOST ASSEMBLE PRODUCTS AT HOME FOR PAY SCAMS WORK.

THEY ARE A WASTE OF TIME AND YOUR MONEY.

THIS POST IS BASED ON MY DIRECT PERSONAL EXPERIENCE an research that you can easily find by a simple google search.

RIP-OFF Warning First premier bank of souix falls south dakota

You may have noticed that one of the adds on this site is for the top 10 credit cards for balance transfers.

most of these are good to fair. ONE CARD IS AN OUTRIGHT CROOK.

THAT CARD IS FIRST PREMIRE BANK, THEY CALL THEMSELVES A BAD CREDIT LENDER.

THATS BULL

THEY CHARGE OUT LANDISH SERVICE FEES ON THE FIRST BILL.

THIS IS THEIR WEB ADDRESS FOR THOSE FEES OR LOOK BELOW AS I PASTED THEM HERE

https://www.premiergoldcard.com/carddetails.php


They will hit you with a 48 buck annual fee,and a 29 buck account set up fee, and a 95 buck program fee, plus a 7 buck monthly service fee.

IN OTHER WORDS THEY WILL HIT YOU WITH 179 dollars in FEES,on your first statement,

for the card they issue you with a 250 credit limit. THIS TYPE OF PREDATORY CREDIT CARD PRACTICE IS UNBELIEVABLE,BUT THEY DO IT.

THEY ARE AN ABSOLUTE RIP-OFF.. THEY ARE NOTHING SHORT OF CRIMINALS.

AVOID THEM LIKE THE PLAGUE









Below are the account fees, rates, costs, limitations, available credit and other terms for the PREMIER Gold Credit Card offer.

Click here for a printer friendly version of these Fees, Rates, Costs & Limitations. Please print these disclosures and keep them with your records. If you are unable to print these, write to First PREMIER® Bank, C/O Correspondence, P.O. Box 5524, Sioux Falls, SD 57117-5524 and request a copy. By submitting this application you understand that your initial credit limit will be at least $250.00 and the following fees will be billed to your first statement: Annual Fee of $48, Account Set-Up Fee of $29, Program Fee of $95, Monthly Servicing Fee of $7, and an Additional Card Fee of $20 per card (if applicable). These fees will reduce your available credit until they are paid. You will be eligible for consideration of a credit limit increase in as little as 6 months. In addition, by submitting this application you certify that you have read, meet, understand, and agree to the account fees, rates, costs, limitations, available credit and other terms listed below.



Fees, rates, costs and limitations
Please print these disclosures and keep them with your records. If you are unable to print these, write to First PREMIER® Bank, C/O Correspondence, P.O. Box 5524, Sioux Falls, SD 57117-5524 and request a copy.
Annual Percentage Rate for Purchases 9.9%
+Other Annual Percentage Rates APR for Cash Advances 19.9% and Penalty APR 19.9% for Purchases.

-----See Penalty Explanation below-----
Fees for Issuance or Availability of Credit Account Set-up Fee: $29.00 (one-time fee)

====Program Fee: $95.00 (one-time fee)==== TOTAL RIP OFF

====Annual Fee: $48.00 ========================= RIP-OFF

====Monthly Servicing Fee: $84.00 Annually===RIP OFF

====Additional Card Fee: $20.00 Annually per card, (if applicable)===RIP OFF


Grace Period for Repayment of Balances for Purchases If you pay your previous balance in full on or before the due date shown on your previous statement you will have a grace period on purchases of 25 days (from the statement closing date to the payment due date), and can avoid finance charges on current purchases by paying the statement balance in full on or before the due date.
Method of Computing Balance for Purchases Average Daily Balance (Including new purchases)
Minimum Finance Charge $0.50
Transaction Fee for Cash Advances Greater of $5.00 or 3% of the amount of the cash advance
Fees for Paying Late or Exceeding the Credit Limit
Late Payment Fee: $29
Over Limit Fee: $29

Monthly Account Maintenance Fee $3 per month on closed accounts with an outstanding balance of $20 or more.
Fee for Transactions in Foreign Currencies 1.0% of the transaction amount

++The Monthly Servicing Fee of $84.00 will be billed at $7.00 per month.


Other Charges: Credit Limit Increase Fee: Each time your Account is eligible and approved for a credit limit increase, a $25.00 fee is imposed. Internet Access Fee: $3.95; Copying Fee: $3.00 per item. Wire transfer fee: $5.00 per transaction. For description of FINANCE CHARGES see below.

Additional Fees: Return Item Charge: $25.00; Autodraft Fee: We impose an $11.00 charge for each payment made through an autodraft service we provide. Autodraft payments requested through our automated systems (i.e. Voice Response or Internet) are assessed $7.00 per transaction. Express Delivery Fee: We impose a $25.00 fee for the express delivery of your Card(s) sent Priority 2-day airmail. This service is only available on lost, stolen or replacement cards.



1Penalty Pricing Information: If your Account goes past the due date two times in any six month period or goes past the due date for two consecutive billing cycles the APR for purchases will increase to 19.9%. The APR for purchases will be reduced back to 9.9% if the Account is kept current for 3 consecutive months or is paid in full.

NEED I SAY MORE

How to use leap call options for serious investing

Leap call options are simply call options that are good for 1 to 2 years.

A call or put option is a contract that controls 100 shares of a stock.

The call option is used when you believe a stock is going up.

The put option is used when you believe a stock is going down.

The purpose of a leap call is safety and profit.

My best profits have been made when I have not played more then 20 bucks out of the money.

That means if a stock is fifty dollars a share, a 70 dollar option is 20 bucks out

of the money. A 50 buck stock option would be considered an in the money play.

2 stocks that I play are stock symbol 'Ibm' and 'Cat'

Ibm is a fast moving stock that can be easily played 20 bucks out of the money.

Cat is a slower mover and you may want to only play 10 bucks out of the money.

If you play to far out of the money, you will lose time premium and even though the stock has moved up 5 bucks, you might only make 10 cents on the dollar.

Ie 50 cents for 5 buck move or 50 bucks profit per contract.

This example is perfectly shown by ibm and its jan 2010 140 leap call Wibah

at 101 about 10days ago I payed 500 per contract for this stock option.

now at 109 on 2/1/08 this option has a bid of 540 and an ask of 620.

THIS IS AN ACTUAL TRADE I DID THIS YEAR

ie I played 40 bucks out of the money and I made 90 bucks as the selling price or the bid price was 450 when the ask was 520 when i bought in

I had placed a limit buy order of 500 because My experience has shown I can shave 10-20 bucks off an ask price on a volitile day.

And thats exactly what happened.

Now I have made 10 cents on the dollar or 40-60 bucks a contract profit.

the option can be sold for 540 or maybe 560 and since i payed 500 a contract

thats 40-60 a contract profit 40 is a guarantee

So lets examine the results.

4 ibm leap contracts wibah.o cost 2000 and have made 4 times 40 or 160 profit.

thats over 8% return.

4 times 60 would be 240 or 12% profit

If I had bought 50 shares of the pure stock for a cost of over 5000 based on the 101 per share price

I would have only made 9 times 50 or 450 profit.

ie less then 10% in the same time period and 2.5 times more money at risk.

Now if i had spent the money for a 120 option my profit would have been 30 cents on the dollar or more, as the option would only be 11 bucks out of the money instead of 31 like mine is.

4 contracts would have probably cost 1200 each with ibm at 101 so 5000 would have been spent.

The profit would be 9 times 30 worse case or 270 per contract. 4 contracts times 270 is 1080 gross return on a 5k investment ie 20%

200 of this profit would usually cover the bid ask spread on either trade and therefore your net profit would be about 5% less.

If the option average was 40 cents on the dollar my return is 360 times 4 or 1440.

Thats almost 30% return, on a 5k investment

Thats much better then the 450 return if I had only bought 5k of pure ibm stock at 101 a share.

My only sugestions are,DONT GET GREEDY, play only leap call options, and go out as far as you can.

I have been playing jan 2010 expiration leaps since aug -sept of 2007.

I LIKE SAFETY

good luck