4 ms·
No, you can't. You pay a premium for the option. One of the massive benefits of trading options is being able to leverage your money. If you can't afford to b
by madamelic 6y ago
No, you can't.
You pay a premium for the option. One of the massive benefits of trading options is being able to leverage your money.
If you can't afford to buy 100 shares, you can buy an option for 100 shares for much cheaper, with the intention to flip the option later to either a bagholder or someone who wants to exercise it.
This method isn't even exclusive to retail traders.