April 10th 2006 - AMGN

Dykstra picked the July 60 Call for AMGN Amgen Inc.

Option price: $12.00
Stock price: $71.53
Approximate premium: .47-cents

The stock traded to a high of $71.20 on April 18th 2006, a loss of $0.33.

If 10 contracts were purchased:
Would the minimum of $1000 been made: No, not yet.
Minimum loss potential: $330
Maximum loss potential: $71.53 subtract the Lowest price $65.71 (May 3rd) = $5.82 per share or $5820.

July 10th update - Sorta forgot about this one. Doesn't look to good. The stock is trading around $66 and the option around $7, well down from the $12.50 the options were purchased at with the July expiry not far away.

July 23 Update - The option expired on July 21st and the stock price closed at $66.15, well below the price at the time of the option purchase. The option value never gained $1.00 to make the $1000 target.