NTAP - I've now sold Sep 22.50 Put options to add real profits to my current 25.00 Call option loss on paper.
So now my position is very bullish . . ..
unlimited profits to the upside and unlimited loss to the downside (well, $2,250 times number of contracts).
Sounds just like owning the stock itself, except I paid for the call option and got some back from my short put option.
BUT, the difference I see is that my gains, if the stock price goes up in August, are amplified due to the leverage that options give you.
Case in point, our UTHR option position ...
yesterday the stock went up 26%, but our call option went up 613%.
BUT, options are an easy way to throw money away if you don't fully understand them and know what you are doing.
so, kedew ... go NTAP !!!
