stock trading, buy stock

[Buying LEAPS Calls on CDC Corp. (CHINA)/Buying Jan '07 2.50 Calls (VQHAZ)/Day Order/Limit $1.50] Dear Member: CDC Corp. (CHINA) announced a large buy back of its' stock yesterday and broke through resistance. It has held above that "old" resistance today. CHINA has been in an uptrend since April and the company has announced the buy back since they believe the current price of the stock does not represent the long term value. Though the stock is inexpensive and trading around $3.44, I have chosen to place an order to buy the Jan '07 LEAPS Calls (VQHAZ)that are currently 1.40 x 1.50 instead of the stock itself. If I am filled at 1.50, I would be about 90 cents in the money. Although the risk is limited to my investment, I consider this play to be fairly speculative since the stock is trading at such a low price. I will set my initial exit contingent on the stock closing below 3.10 which would still be 60 cents in the money. DISCLOSURE: At the time of publication, I have no position in the referenced options or the underlying stock. Sincerely, Bill Kraft for CutLoss, Inc.
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