Hi Susie,

So far so good. But we have a little more work to do, I think. What is the profit potential of this trade? What is the RRR then? What is your exit strategy if the trade does not make the move higher? The outright prices of the options say $265. We know we won't be able to buy it for that because of the bid/ask right? What is the max you are willing to pay for it? What is the open interest on these 2 options?

What is the best futures contract trade you see setting an ambush for? What is the risk of that ambush trade? The target and resulting potential profit and the resulting RRR of that trade? Should we not compare the two to see which produces the best bang for our buck?

Maybe we should all do these calculations as a homework assignment and share our answers here. I think it would be a truly great learning exercise. We'll all learn a lot more than me simply rattling off an answer.

Susie, this may delay your entry by a day and that may be unfair to you so I am emailing some thoughts to you directly. Do what you think best after you receive them but please do the drill here. You set in motion a very rich opportunity to do some real learning here, let's capitalize on it.