> Should I buy the January, 2015 Southwest call option with a strike price of 29?

Should I buy the January, 2015 Southwest call option with a strike price of 29?

Posted at: 2014-12-05 
he stock is soaring and it has earnings next month, should I wait for a pullback, then buy, or buy tomorrow? The stock is at 27.29 right now.

You could buy the 29 at 1.40 and sell the 30 at 0.85 call spread four times for a potential gain of $200, or sell two 25 puts at 1.10 for a potential gain of $220. Both of these options have less risk and higher probability of success than an outright purchase of a call option.

As far as predicting future price, nobody can do that. That's why you hedge your bets with the spread.

If you like high-flyers, this list will give you lots of ideas if you ignore the pennies on the list (look for volume).

NASDAQ - Pre-Market Ten Most Active Share Volume

http://dynamic.nasdaq.com/dynamic/premar...

Try selling a put out of the money. Earn some income while you wait for a pullback

What's the premium?

the stock is soaring and it has earnings next month, should I wait for a pullback, then buy, or buy tomorrow? The stock is at 27.29 right now.