/biz/ - Business & Finance

>>30434123
Why not consider purchasing a call option anon. I'm kinda of new at options myself, but it seems if you're expecting it to rocket up to the moon, options allow you more leverage. Take this example, instead of purchasing 182 worth of shares, you could theoretically purchase this option

16th April 150.00 Call
Price per option 25.25
Contracts: 5 x 100 = 500 shares
price: 24,200

What does this mean? If you purchase 183 shares, you own those shares and you have no time limit and you can set your limit at $350 and boom now you sold your shares for $50,000 shares.

Now, instead, lets say you purchased that option. If the price went to 385, you'd have higher leverage meaning instead of a 2x gain, you're looking at 10x gain (I'm not sure how to calculate it, but you can calculate if you know the gamma and delta of the stock). So basically, options are a form of trading stock that is higher leverage but more risky.