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Re: eddyimano post# 1013

Wednesday, 10/19/2016 3:35:54 AM

Wednesday, October 19, 2016 3:35:54 AM

Post# of 2472
Just play with this calculator http://www.josephsunny.com/finance/option.html

IMO the trick is you want something that potentially has a 50/50 chance of happening and then buy a low priced option (say under $0.25). Some of the options I have bought are only worth a few cents. If you buy an option for 4 cents or 10 cents having it run to even $0.50 is a pretty massive gain.

I just accept that half the time (hopefully) I will lose 100% of my money. I like the risk reward - bc you will know what your downside is but have almost unlimited upside incase of a big event that significantly moves the market on a stock. (Brexit for pound and gold, Wells Fargo Scandal, DB news and fine on them, potentially the US election).
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