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
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