Quote:
Originally posted by lil2rich4u2
One options contract is equal to 100 shares, right?
so if i want to buy a single contract at the asking price of lets say $4.00
do i pay a total of $4.00 or a total of $400 ?
Another question,
if i feel confident a stock is going to go up in value ... for short term profits am i better off on the stock or the options?
from the little bit that i can peice together it looks like the options is a more rewarding buy for the short term, assuming it goes in your favor.
thanks for any help.
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the purpose of purchasing the options instead of the underlying stock is you have more leverage with your money because it doesn't take as much capital to invest it in options as it does with stock