Thread: Money Investing megathread extravaganza
View Single Post
Old 02-02-2017, 08:33 PM   #621
scho63 scho63 is offline
Politically Incorrect
 
scho63's Avatar
 

Join Date: Feb 2009
Location: Scottsdale, AZ
Casino cash: $2641110
Quote:
Originally Posted by Buehler445 View Post
Options get expensive for long terms trades. If you think it is a good buy, I'd just buy the stock. You pay for time value with options.
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
__________________
"The only difference between sex for free and sex for money is that sex for free costs you a WHOLE LOT more!" ~Redd Foxx~


2018 2019 2020 20212022 2023 2024 Adopt a Chief - Clark Hunt and Brett Veach
"The men who drafted Patrick Mahomes"

Posts: 50,616
scho63 is obviously part of the inner Circle.scho63 is obviously part of the inner Circle.scho63 is obviously part of the inner Circle.scho63 is obviously part of the inner Circle.scho63 is obviously part of the inner Circle.scho63 is obviously part of the inner Circle.scho63 is obviously part of the inner Circle.scho63 is obviously part of the inner Circle.scho63 is obviously part of the inner Circle.scho63 is obviously part of the inner Circle.scho63 is obviously part of the inner Circle.
     Reply With Quote