Why is buying an option " a gun to your head "
you buy the initial purchase and there are no further obligations after that. You can let it expire, sell it or pay the strike and buy the shares - your decision.
there is no further responsibility or "gun" afterwards, the benefit is the leverage you can get without borrowing money.
ie you could actually buy 100 shares today for $ 1600, or you could buy the option to buy 300 of them,
for the same cost today.
.
if the share price doubles, the guy who bought shares made $1600 profit.
the guy who bought options, has made almost $4500.
options help question with image !, page-8
-
- There are more pages in this discussion • 20 more messages in this thread...
You’re viewing a single post only. To view the entire thread just sign in or Join Now (FREE)
Add MSB (ASX) to my watchlist
 (20min delay)
|
|||||
|
Last
96.0¢ |
Change
0.025(2.67%) |
Mkt cap ! $1.096B | |||
| Open | High | Low | Value | Volume |
| 95.0¢ | 96.5¢ | 94.0¢ | $1.231M | 1.291M |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 4 | 94461 | 95.0¢ |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| 96.0¢ | 61151 | 6 |
View Market Depth
| Last trade - 16.10pm 12/09/2024 (20 minute delay) ? |
| MSB (ASX) Chart |