IBM
- Thread starter dawgball
- Start date
I think you had the right idea, just need to go more long term. Buying in the money calls has worked out for me very well over the last year and I think this upcoming year should be a great one to play the big cap stocks as they have lagged. I have Altera (mo) June 75's which I like a lot and as a speculative play, just bought Shanda corp 07 leaps at a strike of 15 for 3.70 last week. This just came public, ran up way out of control and pretty much crashed at just under 15. I think you give this a few months, you'll be sitting at a large profit. This is a play on China. IBM just was downgraded today so it got hit and being short term option, you lose the time to recover. I think IBM is 95-100 price in 6 months. Good luck
- Feb 12, 2000
- 10,652
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- 48
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pf -- thanks for the insight. I actually got a nice little uptick in IBM today allowing me to sell it for that loss. I agree that IBm is heading up. I usually play short or mid-term options. I have a few others listed here that are more mid-term.
On your LEAPS, do you write covered calls on them? I think Eastman Kodak is becoming a decent play on a Spread trade like this.
Would be interested in getting your take.
On your LEAPS, do you write covered calls on them? I think Eastman Kodak is becoming a decent play on a Spread trade like this.
Would be interested in getting your take.
it is interesting you mention Ek as I live in Rochester where they are based. It is a good one to write covered calls against to get some income out of it. It has some big problems it is working through so I don't anticipate much upward movement on it for a little while. If you want to hold it, you'll be safe writing 30 or even 27.5 calls against it if short term enough. I tend to look for dips on stocks to buy, such as a downgrade or off disappointing earnings depending on the economy. Right now I'm looking for an opportunity to get into some financials. Goldman sachs, citi, are two I'm looking at going out 6 months on. If the fed stops raising the fed funds rate, these will take off and they have lagged the market all year. Also GS is a takeover target, bet it happens in 2006. Est takeover is around 165 so has the potential for a big pop fast. I would grabe IBM on any dips, going out 6 months on this too. Love SNDA, this stock just came public, ran to over 40, dropped to under 15 recently, I think it is an overreaction, should at least come back up to 20-25 in next couple months, maybe quicker.
