Replies to post #412587 on InterDigital Inc (IDCC)

[MJPLIFE11]

My preferred way is to sell a put to pay for the calls.

[Turney]

just buy the stock

[mickeybritt]

captainslog


There is 2 ways to buy calls. 1 is what they call deep in the money which

means you put up lots more money but you have more protection of not

losing all but you can control 2, 3 times the amount of shares. Say you buy

$60.00 March calls and pay $25.00 not sure of price just a example you can

control for $75.00 3 times the shares. Your risk is the stock goes below

$60.00 so if the stock come March is $75.00 you would lose money because

in essence you paid $85.00 for the right to buy the stock at $60.00.


2nd way is buy what they call out of the money calls, so lets say you buy

March $90.00 calls and you pay $5.00 a call which means for you to make

money the stock has to be above $95.00 for you to make money. Example

I bought some calls for December and March and I had a extra $450.00 so

I bought 10 December $70.00 calls for $450.00 and today they are worth

$13,000 damn good return but I think they will be worth over $30,000

come December. Not bragging because I have also lost lots of money on

calls. Never risk more than you can afford to lose, and you must be

convinced what you are doing is right but that don't mean you are. It is

a gamble but so is owning any stock.



JMO
Mickey

[scruffynyc1]

I always start worrying when I see the "how do I buy options" post.......