Congratulations, you just made a 15% return on your trade!
Well it seems that the headlines have changed since you bought the stock. Not long after you bought your call options, President Bush announced that a coalition of UN Nations would be invading Iraq. In the meantime, the GE stock has shot up 15%. It seems like the beat-down bulls finally have some confidence again and are rushing back into the market. It is not clear how this war will directly affect these stocks, if at all. The clear thing is that you bought a good company when nobody else wanted it and it paid off.
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