the technicals behind this breakout, page-42

For options there is a formula you can use

http://www.blobek.com/black-scholes.html

However on stocks like this where its hard to predict the future change in share price (beta)based on historical shareprice movements , I feel it is better to do a ben franklin analysis, ie just writting down the good points of the company then comparing to the risks and making a judgment call, and taking into account the exercise price of the options and their termination date.

I sometimes buy options in a micorcap after making that judgment call, but tend to stick with the heads, as these microcap companies inherantly have shares that behave how an option from a large company behave, ie plenty of beta and (gulp) an expiration date if the microcap cant refinance and goes broke.