2022年1月5日 · The premium collected from the "short" call (the one you're selling) helps to "offset" the cost of the ITM long call (the one you're buying). ----- Buying a single-leg call vs a …

2020年6月23日 · For example if a $10-wide OTM call spread (like $100/$110) costs $4 then your max ROI will be 150%. That's because $10 wide spread will be worth max $10 when the stock …

2020年5月21日 · Let's look at a deep OTM call. The intrinsic value = $0. It's less likely that the stock price will go up to reach the deep OTM strike price than $77. Thus, the "potential" value …

One strategy you can do, is take the capital that you would spend on 100 shares, and instead you can purchase one safe ITM leap call, and with the remaining capital buy very far OTM calls. …

2021年4月24日 · LEAPS always carry a lot of extrinsic value because they're so far out, but "the market can stay irrational longer than you can stay solvent," comes to mind when you make a …

2021年2月20日 · Here are the questions. For long term call options where I am expecting solid steady growth, does it make more sense to buy OTM options over ITM? Also at what point …

Hello everyone, I have a question regarding buying a far OTM call option with a long expiration date. If based on my research, I believe a company will rise in the future based on its …

2021年12月15日 · Trying to understand PUT options and hedging by market makers, and hoping someone here can help. I understand when buying an ATM or OTM call, the market maker …

2023年6月7日 · The strike of this call option should be more than $1 because adding extrinsic value, let me say $1.5. If I were a call holder, I prefer to sell to close the option at $1.5 and buy …

Say you can buy back the call for $45, netting a $5/share profit. That $5/share is now taxable, where it wouldn't be if you just left it as equity in the shares. You may even have an unrealized …