Options Wonderland

[VERITAS77]

Hi all, nice posts today.

Thought Id stop by. Yes, NFLX- Is awesome.

Its because its the best $7.99/month entertainment that exists!!
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One reason to occasionally buy in the money options- is for the *commission factor.

Buying cheapies are great... but if your going to buy $300 worth...
you may be buying (.05x100=5 dollar option)...so, 60call/put purchase may *additionally run .75 contracts or- $45.00 = 15% fee.
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You can avoid this sometimes and buy a single in the money option for say, the 300 dollar amount you may want to invest.
Less return, buy wayyyy less risk.

In the money is simular to just buying the stock.
That is, with in the money- your return could still be 20% on a 5% underlying stock movement.
Rather then the 5% movement...which is worthless after commission if your not trading with 5-10k...instead of 300 bucks, lol.

And obviously we know that a 5% weekly option, etc can bring 20-50% gains/ contrary loose 100%.

risk/reward management really.

-VERITAS77 *^]-