As pointed out in another group, an opinion on AXP is not really relevant to my original question which concerned the overall approach and not any particular stock.
Thanks anyway.
Lou
--- In ConservativeOptionStrategies@yahoogroups.com, Randy Harmelink <rharmelink@...> wrote:
>
> On a stock that dropped nearly 20% in the past several weeks? Not my cup of
> tea.
>
> On Sun, May 16, 2010 at 5:18 PM, Louis <loupi3@...> wrote:
>
> > Okay. Back to the drawing board. Given the small return, the expiration
> > week idea is not that appealing.
> > Let's take the next month. The 37 put is 1.10. With a theta of .03, it
> > should open up next week, all things being equal, at .95. The return would
> > be .95/37 or about 2.6% for the month (less commiss), or an ARR in the area
> > of 35%.
> > Respectable risk/reward ratio?
> > Lou
> >
>
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