[Buying LEAPS Calls on Tenet Healthcare Corp (THC)/Buying Jan '07 5 Calls (ONZAA)/Day Order/Limit $3.20]
Dear Member:
I am placing an order to buy the Jan '07 $5 LEAPS calls (ONZAA) on Tenet Healthcare (THC) for a limit of $3.20. The stock is trading at $7.57 as I write this alert so the options would be about $2.57 in the money and I will be paying about 63 cents for the time portion of the premium. It looks to me like THC is coming off a bottom following some of its recent troubles. While this play is quite speculative, I like the reward to risk possibilities. These LEAPS have a delta of about .86 so the option price is expected to move 86 cents for each dollar the stock moves.
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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