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Dzielak51

03/13/09 8:57 PM

#22609 RE: WEEDWACKO #22608

higher reward
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green*13

03/13/09 9:01 PM

#22613 RE: WEEDWACKO #22608

The option price can move exponentially relative to the stock price. Stock price can move 10% and certain option prices could move 1000%. These can make pink sheet stocks look like slugs at times. Also, you can effectively short the stock without a margin account and there is only a one day trade settlement. Sell Monday trade with same cash Tuesday. Another point is when there was no shorting bans on certain sectors this did not apply to options because you were not actually trading the security just the rights to it.