Quote:
Originally Posted by scho63
For those who want to dip their toes into options, I strongly recommend looking at the Ford (F) June 2023 calls, one year out. They are very cheap and Ford at $12-$13 is a great value.
Low risk with nice upside.
The June 16, 2023 calls for $20 strike are around $53 a contract.
Buying 10 will cost you $530 and I see a 3-4x upside.
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I've been eyeing options, trying to figure out if I understand it, but hesitant to jump in.
This is probably an obvious statement, but I want to make sure I understand:
So, basically you are buying call options at a $20 price. So you believe a year from now (or earlier) the price will be above $20. Given the cost of the options, you would make money at any point the stock was above roughly 20.53, correct?
I've held shares of Ford for a long time, I hope you are right, but F hsa never really taken off as I expected.