Toward the end of the session we considered an opportunity to get long in Microsoft using call options. The trade triggered shortly after the class ended, whereupon the options rose from 0.55 to 0.90 in 30 minutes. Although we missed out because I’d suggested placing a bid for the calls at 0.50, a tick beneath what turned out to be the low, my rationale for bidding exactly 0.50 was tightly reasoned and instructive. Check it out if you want to add another tool to your trading arsenal.
