Why would you pay for a call option when you could just buy the stock if you believe a stock would go up?
If a stock is at $50 and you believe it is worth $60, you could buy call options saying you could pay $55 for the stock in the future. When it does go up to $60, you now have the oppurtunity to buy it at $55! But wait, why not just buy it at $50 and save the extra $5 per stock + the option fees...?
Submitted February 02, 2017 at 10:00PM by RoboticsNote http://ift.tt/2kyCH2o
