March 31

Ichimoku Stock APH Trade Setup, Option 3-31-10

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APH has ESTIMATED date earnings of 4-20-2010.    Volatility for the options for this stock will be increasing soon.    Price is right around the Kijun Sen and Tenkan Sen on the weekly chart and it still looks healthy in regards to going bullish.   Risk is very low.  

If you look at options, we can look July 50 calls for around 0.40/contract.   This is very low risk.  See chart below for the “greek data” for the options.  Right now, delta is 53.15 so for every dollar move, we will make 53.15 which is over 100% cost of the option.  Also, since volatility is low and with earnings coming soon, volatility should increase.   Therefore, we can make money off vega which is 10.81.   This is over 20%+ of the option price.   

 
 
 
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