Answer: For Leverage & Increased ROI (Return on Investment)
If you buy 1000 shares of xyz stock trading at $20.00, it would cost you $20,000 ($20 x 1000 shares).
If you trade a January option on 1000 shares of xyz stock and the option is trading at $1.50, it would cost you ($1.50 x 10 ... Views: 845
If you only buy options, the deck is stacked against you. Roughly 75% of options expire worthless or are closed at a loss. Since everything must add up to 100%, that means if 75% lose then only 25% win. If those odds sound good to you, you should spend a lot of time in Atlantic City or Las ... Views: 1098