[Buying LEAPS on Northrup Gruman (NOC)/Buying Jan '06 $50 LEAPS (WJOAJ)/Limit $6.10 day order]
Dear Member,
I am placing an order to buy the Jan '06 $50 LEAPS (WJOAJ) on Northrup Gruman (NOC) for a day limit of $6.10. The delta is currently around .65. My initial exit is contingent on the stock going below $51.49. If it turns against me before I am able to raise my stop I should be able to cap my loss around $0.85 absent any unexpected gap down. The stock, itself, pays a dividend in September which the holders of LEAPS don't get and which may cause a bit of a drop in the stock price at the time of payment.
DISCLOSURE: At the time of publication, I have no position in the referenced options or the underlying stock.
Sincerely,
Bill Kraft
CutLoss, Inc.
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