Let's explore an Options Strategy known as a Bullish Synthetic spread, which allows an options trader to control 100 shares for less capital compared to buying 100 shares of a stock. Options chain for AAPL expiring on Apr 19 Suppose one is bullish on Apple, and Apple is currently trading at $181 (as of the time of this writing). If you want to buy 100 shares, the capital required (not including commissions) is $181 x 100 = $18,100. For every $1 rise in the stock of Apple, the gain on the position is $100, and vice versa. Let's explore a strategy that allows you to control 100 shares of Apple for less capital, and that is done by a Bullish Synthetic spread, by entering a Call option on a buy leg, and a Put option on a sell leg. First select an options expiration, in which I have selected Ap
Why options are addictive?
Options traders said options are addictive because it can gain 2000% but only lose 100%. ------------- Do you agree with them? Do you find options trading addictive? What's your attitude towards options?
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