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[Keats]

Learn to leverage your cash with options conracts.

I bought today 20 MAY 2009 $20 CALL options for $2.45.  20 Calls x 100 shares each x $2.45 = total outlay of $3400 premium

If HOG stock goes up > 22.45/share by the third Friday in May, then I make money. If it is below that price, I lose my premium.

If you bought 2000 shares at $17 it would cost you $34,000 and all your money would be at risk.  If you bought the option you would still control the same 2000 shares, but all you would risk would be the premium, or $4900.  I'd much rather risk $5k than $34k.

You can read up on options trading here for free: http://www.cboe.com/LearnCenter/default.aspx

Good luck!

I have a few friends that have lost a lot of money with that same logic. Puts and calls is a risky short term game.

What you failed to illustrate is the likely event of losing all of your investment is many more times likely in the puts and calls game.

What if you purchased the stock at 20.00 and it went up to 21.00 by May, one you lose your money in the Call and the other you made 5%.
You do not even start making money till the stock rises over 10% and the other investor has already made $4000.00

I think I would chose the Craps table over the puts and calls. Or betting the line on football.

[jimp]

I've done fine selling it short all the way from above seventy, in and out several times. Now I think its getting close to a buy, between $14 and $10.

The question is will they cut the 8.5% div, I think so by 50%. Also if you look at chart you will see the stock has major long term support at $10.

[Screamin]

15.3 today. Lowest since '99. Thank God for the weekend.

[MontyB]

I have a few friends that have lost a lot of money with that same logic. Puts and calls is a risky short term game.


I think I would chose the Craps table over the puts and calls. Or betting the line on football.

Only a Phillies fan could choose Craps or football as an investment strategy.  JUST KIDDDING !!!!!!!   

Everything in life has some risk.  I was just suggesting that people examine ALL their choices before committing cash to this current market.
cheers!

[Keats]

Yes, as a Phillies fan I see Puts and Calls on the same level of investment strategy as Craps and playing football lines.

At least I have made money with them.

and there was entertainment also, not so much with margin calls.