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re: I'm seeing a bargain with this stock, what am I missing?

Posted on 4/5/13 at 1:32 pm to
Posted by OnTheBrink
TN
Member since Mar 2012
5418 posts
Posted on 4/5/13 at 1:32 pm to
quote:

LSURussian


So, lets say I wanted to buy 100 shares using options. I put up $4.00? Or I put up $900?

And if it doesnt hit $9, I lose $900 or $4?

BTW, thanks for answering these crazy questions, just trying to understand them a little better. I do not ever plan to trade them.

Also, by looking at that chart, does it not look like investors are a little more bullish on it?
Posted by Vols&Shaft83
Throbbing Member
Member since Dec 2012
69942 posts
Posted on 4/5/13 at 1:39 pm to
quote:

So, lets say I wanted to buy 100 shares using options. I put up $4.00? Or I put up $900?

And if it doesnt hit $9, I lose $900 or $4?


You put up $4 for the contracts, then if AA hits $9, you buy 100 shares for $900.

If it doesn't hit $9/share, you lose the $4 on the contracts.
Posted by LSURussian
Member since Feb 2005
126966 posts
Posted on 4/5/13 at 1:42 pm to
quote:

So, lets say I wanted to buy 100 shares using options. I put up $4.00? Or I put up $900?
You would pay $4 for the right to buy 100 AA shares on or before April 20, 2013 @ $9/share.

You would not exercise the option and pay the $900 for the 100 shares if the strike price remains below $9/share before April 20.

quote:

I do not ever plan to trade them.
Aw, why not? You're an expert now!

quote:

Also, by looking at that chart, does it not look like investors are a little more bullish on it?

What do you see on that chart that makes you think that?
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