[Buying LEAPS on Lam Research (LRCX)/Buying Jan '06 20 LEAPS calls (WMJAE)/Day order Limit $5.10]
Dear Member,
This morning, I am buying the Jan '06 LEAPS calls (WMJAE) on Lam Research (LRCX) for a limit of $5.10. I won't buy too many since the open interest is only a little above 200. I never buy more than 5% of the open interest. This entry is based on a bounce off a triple bottom around $19.80. My initial exit will be contingent on the stock going below $19.65. The delta is currently around .64 (which means that the option price should move $0.64 for each $1 the stock moves - up or down).
DISCLOSURE: At the time of publication, I have no position in the referenced options or the underlying stock.
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