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| Topic | Stock Topic 32 |
| Forceful_Dragon 08/12/21 4:47:15 PM #33: | masterplum posted... They usually don't get excercised. There are reasons to buy in the money calls where you want to hold them. For example I bought some deep in the money cracker barrel calls as a form of leverage. Instead of buying 15 shares for $2000, I bought a $2000 deep ITM call which means I'm getting 6X leverage back for my money But then you still have to have enough cash on hand to pay for 100 shares when it's time to exercise, right? And you have just as much risk associated with the price falling, right? Even if it doesn't fall out of strike range because of how far in the money it was, you are poised to gain much less. All in all this has been fairly enlightening, but when I do have the funds to consider stock options I think I'm going to start simple and simply sell puts on stocks that I (A) can afford and (B) would not mine owning at a discounted price should the strike occur. --- ... Copied to Clipboard! |
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