Brainstorm: options markets

Options markets

if a ticket is trading at $1 this round

and I think it will be trading at $2 in 3 rounds

I pay 25¢ for the option of buying the stock
in a fixed period of time
for a certain amount of money.

clarification:

If a ticket is trading $1 this round

and I think it will trade $2 in 3 rounds

I pay 25¢ for the option of buying it for $1.50 in 3 rounds
thereby pocketing the 50¢ profit.

additional clarification on options:

remember that its only an option

so if the stock price does not go up as I am anticipating
then I am only out the fee that I paid for the option
(25¢ or whatever…)

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

%d bloggers like this: