His Math is wrong each call consist of 100 share cost $2. 10 will cost 20$ it gives you option on 1000 shares. At 5 $ theoretical price you max profit will 2500$ on 2.50 Call. You don't have to buy shares at 5 $ intrinsic value will be 2.50 you might have to sacrifice 1 to 2 Cents. 90 % options buyers lose money. Call or Put both, house make money.
Farooq This post is for educational and amusement purposes only, and is not to be interpreted as trading advice. Consult your financial adviser before placing any trade.
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