Thread: Money Investing megathread extravaganza
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Old 02-02-2017, 09:16 PM   #625
lewdog lewdog is offline
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Join Date: Sep 2011
Location: Valley of the hot as ****
Casino cash: $1631900
Quote:
Originally Posted by scho63 View Post
True, but it will move dollar for dollar with a long term expiration for at least the next 9 months. The $30 strike option that expires Jan 19 2018 is trading around $4.36 or $436 to control 100 shares. The stock is $18.12 after another big drop today on 4x's avg daily volume.

You get leverage of 4.5 times your money.

This is a good option to buy instead of the stock. You can put out roughly $4,500 for 10 contracts and control 1,000 shares.

Additionally you can buy 1,000 shares on margin and it would cost you about $18,200 x 30% = $5.400
Ok so I am getting the basics here but still not understanding what a stock would have to do for me to say, double my money. How do I realistically set expectations? Let's take the $30 strike, a year from now, at $4.36 for 100 shares. What would the stock have to do for me to double my money on that?
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