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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Last
$1.61 |
Change
0.030(1.90%) |
Mkt cap ! $1.832B | |||
| Open | High | Low | Value | Volume |
| $1.65 | $1.65 | $1.59 | $7.014M | 4.343M |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 1 | 342 | $1.61 |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| $1.61 | 54534 | 8 |
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