A little bit of a theory on the options trading Let's say...

A little bit of a theory on the options trading

Let's say investors are paying $2.45 approx 20% upfront for a share in return for a 50% a share cost premium, however, they are locking in the share price. So if the SP would double to $20 (100%), the options should advance more percentage-wise probably to $7.30 (200%) this would bring option cost of SP to 7.30 + 13.00 = 20.30 Almost on par with the then-current SP of $20.00 for an initial outlay of 2.45 plus option cost 13.00 = 15.45.

This is a huge difference! Of course, there is a lot of if's.

I hope I've got it right! A little bit out of my depth. Apology if my thoughts are too simple.

There is definitely money to be made on options. However, there is always the possibility it can go the other way.