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letsmakemoney101

04/15/10 3:57 AM

#26253 RE: naturallyk2 #26245

POZN~ Generally speaking the return on an Call option for a major near term positive event is almost always going to be higher than the return on the stock itself, jmho. You do have to consider the fact that shares in a public company can be held indefinitely or until the company goes out of business, however an option will decline in value over time if the Share price keeps declining or doesn't go up much, and can ultimately become worthless, and that is why options trading is extremely risky, and is mostly used for hedging risks by professional traders. I personally think the May 21st $15 call option can return 400%-1000% on approval (Given if it can be bought around 35 cents), that is why I will continue to add more on dips. Please do your own DD and see the link below to get started on learning about options, hope this helps.

http://www.investopedia.com/university/options/


Disclaimer: I am not an options expert, please do your own DD before making any investment decisions.