I’m starting to scale into those aforeme…

I’m starting to scale into those aforementioned MSFT calls and I’ve settled on the Jan 2013 $25 strikes for less than four bucks (about $3.75 right now). Look at another way, I’ve now got 100 shares of upside leverage in every $375 I spend on each of these MSFT calls I buy. As long as MSFT stays above $25 between now and January 2013, those calls will have some intrinsic value and some value based upon how much time we have before they expire, which is almost two years away right now.  If MSFT were to drop to $20 or $15 or even $10 a share between now and then, my losses would be capped at the $375 per option I spent, and they’d be almost worthless if MSFT were to drop below $20 in coming weeks and quarters anyway, meaning my losses would cap long before holders of common stock losses would see their own losses stop.  Anyway, there you go- I’m buying some MSFT calls.