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When buying call options the max loss is the purchase price. There's not a symmetric return as there is with owning stocks directly. The reason you can make so
by sf_rob 7y ago
When buying call options the max loss is the purchase price. There's not a symmetric return as there is with owning stocks directly.
The reason you can make so much with so little capital is that the probability of the stock price moving above strike price of the call option is low assuming that the strike price is much higher than the current price and the expiration date is soon
- manmal 7y agoAh, thanks for the explanation!