RRZ.com Investments

Questions on stocks and options?

If current stock price is $10. The 3-mth call options have a strike price of $15 and sells for $1.50 now. Stock price indicated to be on the uptrend over the next 6 mths. i) what price must the stock be within 3 mths for both stocks and call options to be equal profitable? ii) If using the option strategy, how much must the stock price rise to within 3mths for the call options to be more profitable? iii) Buying stock or call options will be more profitable?

Public Comments

1. I think you are a little confused about call options. A Call option has a numerous aspects associated with it. Here is a website that will help you understand the process: http://personal.fidelity.com/products/trading/What_You_Can_Trade/WYCT_Options_execute.shtml.cvsr?imm_pid=7&immid=00198&imm_eid=e14503&buf=999999 I hope this helps.