Quote:
Originally Posted by scho63
What I like about some longer term options is when I'm certain a stock is ready for a move up but timing is suspect. So if I can buy an option on a high priced stock and get some decent leverage, I'll buy 5-10 of them.
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That can get real expensive, real quick.
1yr call options on AMZN at 810 runs 93k for 10 contracts. That seems a lot of capital to me to to tie up for potentially one year with no dividend. Why not just buy cheaper stocks and sell covered calls if you are going to spend that kind of money?
Of course you could go maybe further out of the money. Let's say 10 contracts of 900 calls will still cost you over 57k.