sharonpedrosa
Recognized member
Apple stock is currently about $500 per share. I can buy 100 shares of Apple, but it will cost me $50,000 to do it. But if I think it’s going to go up in the next month, I can buy 100 options to buy shares of Apple stock at $500 for $25 each.
Say Apple goes up to $600 per share in the next month. My 100 shares of apple would make $10,000. But I need $50,000 of funds to invest in order to do it. And if Apple drops by $100, I’m out $10,000.
If I instead buy 100 options, if Apple goes do
Say Apple goes up to $600 per share in the next month. My 100 shares of apple would make $10,000. But I need $50,000 of funds to invest in order to do it. And if Apple drops by $100, I’m out $10,000.
If I instead buy 100 options, if Apple goes do