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You can’t buy options on a $1000 stock, the notional amount for each contract would be $100k
by drexlspivey 2y ago
You can’t buy options on a $1000 stock, the notional amount for each contract would be $100k
- nvy 2y ago>You can’t buy options on a $1000 stock Yes you can.
- drexlspivey 2y agoThanks for your pedantic contribution. I obviously mean you can’t buy them on a small account. You can by a fraction of an NVDA share with $200 but you can’t buy a call option
- cbanek 2y agoI heard they are also announcing a 10 for 1 stock split, which would really help the option cost too due to the share price going to about $100
- choppaface 2y agoCall / put spreads work
- jfrbfbreudh 2y agoYou quite literally can; a $1000 strike call contract on NVDA 2-DTE is <$2000 $1140 strike is <$200 (before markets closed today obviously)
- drexlspivey 2y agoMan.. this forum is something else
- sicromoft 2y agoIt quite literally is not something else
- deleted 2y ago[deleted]
- _zoltan_ 2y agoaaaand? why should you be able to? get a bigger account if you want to play around with 1k stocks.
- pertymcpert 2y agoStock price is completely arbitrary. AMD could have 5 digit share prices if it did reverse splits.
- ptsneves 2y agoYep. It is really hard to trade options even for hedging when the notional is so high. Of course you can do combinations of strategies to lower the upfront but I imagine many brokers might just not give the credit worthiness or permissions for that. Don’t know why your were downvoted. Unless I miss something obvious, as well.
- epolanski 2y agoSomebody think about the casinos!