3 ms·
Do you mean the sell + buy options never makes more money, or do you just mean in this current case? Are you forgetting that you can leverage up with more optio
by pathseeker 8y ago
Do you mean the sell + buy options never makes more money, or do you just mean in this current case? Are you forgetting that you can leverage up with more options to offset that gap?
Sell securities at $X, buy calls for 2x the number of securities you had with strike $X+$Y for $Y/10, and have the product go up to $X+($Y2). Profit = ($Y22) - 0.1$Y = $Y3.9.
Keep the securities, have the security go up to $X+($Y2). Profit is $Y*2.
- tomp 8y agoin this specific case, if the option is more expensive than what you're selling in the first place.