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re: I'm seeing a bargain with this stock, what am I missing?
Posted on 4/5/13 at 1:24 pm to OnTheBrink
Posted on 4/5/13 at 1:24 pm to OnTheBrink
quote:Then the option expires and the buyer of the option loses the 4 cents/share he paid to buy the option.
And if they do not reach $9 by the 20th?
With a strike price of $9/share, the price of AA would have to go over $9.04 for the buyer of that option to be "in the money."
1
Posted on 4/5/13 at 1:32 pm to LSURussian
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?
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