I just wanted to thank NicoleWachs here for using my QML BV trade as an example of what to do and what not to do when doing options trading. The advice on looking at the delta on the option is something that should not be overlooked. As Nicole stated in her blog, it's possible for an OTM call with low delta to go ITM. My strategy for the trade is that MCGC will have a strong Q4 earnings announcement and they will continue to pay 1.76/share in dividends in 2008. I believe these two things will convince investors that in light of the soured market in the financial sector, this stock will be a good long term buy for growth and dividend income. If neither happens or both of these news items does not move the stock enough to have the option go ITM by expiration next month, it's only $20 I risked, but I'm sure the returns in the future based on what the Community has learned from Nicole's blog and this trade will be worth millions. How is that for an ROI?
The K-MAN
P.S. I'm with the cheese heads in case anyone's wondering who I'm favoring between the Giants and the Packers.
