Richard CroftS&P 500 IndexSPX-IBUYNov 22, 2005

He bought an option on the S&P at 3,275 to March 2020 at an average cost of $19. Hold till November? He bought an option on the S&P. Interesting--you can exercise them early. 3,275 is an aggressive target to March 2020, but it could happen. Sure, hang onto November. He doesn't expect much time-value erosion till then. Has potential, but you have challenges making that money. He's prefer taking options if he was going long; it's less risky.

Despite it's assent is still very reasonable at the current price. He can't imagine a long term decline.

These options are European settled which means these options can't be excercised prior to maturity. This is the #1 option contract in the world.

Could reach $1,050 or drop to $830. May take a rest at this point. Risk/reward is 6/7% upside or 15% drop.