[Entering LEAPS Position in Usec Inc (USU)]
Dear Member:
Usec Inc (USU), a producer and seller of uranium, has recently broken up through resistance on both daily and weekly charts and is showing a great deal of continuing strength. The stock is trading around $17.50 and the Jan '09 15 LEAPS calls (OFYAC) are quoted at $5.20 x $5.50. They have a delta around .73. Implied volatility is in a relatively low percentile and is beneath statistical volatility indicating relatively cheap undervalued options. Since there is a 30 cent spread, I am going to try to get in between the spread and am placing a limit order to buy the Jan '09 15 calls (OFYAC) at a limit of $5.40.
DISCLOSURE: At the time of publication, I have no position in the referenced options or the underlying stock.
Sincerely,
Bill Kraft
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