Quote:
Originally Posted by scho63
If you paid $4.36 for a single CALL option contract, which equals $436 for controlling 100 shares and the stock is roughly $18.20 today, if the stock goes to $23-$24 within the next 6 months, you will double your money.
Why? Because the option would be around $8-$8.50 as you would be much closer to the $30 strike with plenty of time left.
Make sense?
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So I'd have a year in that scenario for the stock to hit $24. And if at that time I wanted, could sell that option and make about $450? It doesn't have to reach the strike number?