Replies to post #125 on Option Millionaires

[jimmybob]

Options = big risk with higher rewards. My 10 calls of Visa(V) cost me $1600 + commision. Each option is one contract worth 100 shares. So technically I have 1000 shares at a strike price of $85 = $85,000 if I had purchased the stock. Once the stock is in the money($85 or higher) the option price will pretty much move with the stock price + the premium. The premium is worked into the option price based on how far away the expiration of the option is + volatility of the stock. Higher volatility and further away from expiration = higher premium. Trying to get the ibox updated here. Hope this helps a little. I am mostly playing pinchers and earning plays recently...