break out closes on high, page-7

Hrm, sharing knowledge... really? ( - suppose I asked "what is a share?" or "how do i become a millionaire?" no doubt you would, equally, think "how curious"). Anyway, casting aside my sarcky disposition, here's my 5c:

Out of money options pricing is tricky stuff. You're essentially asking the question what will the price be in 8 months, at expiry. If you think it's going to be greater than $1.00+cost of option+transaction cost+risk (in its variety of forms, viz. time decay, volitity etc) (+cost of having capital to exercise on exercise date if you so choose) then it's rational to buy.

If, however, you haven't the foggiest but want to increase your exposure to RRT, it may be prudent to leverage and buy more ordinary shares. This way you're
less likely to lose all your money than if the options expire out of money.

Of course, if you want to trade them as a trader, I would suggest you do go to library and see what you're getting yourself into. It's the true all or nothing game. Might be better odds workings the horses unless you have insider info, have a gift, goodluch and/or experience...

regards,