The choice between buying a call option and buying a lottery ticket essentially comes down to assessing risk, probability, and strategy. Summary: Lottery vs. Call Option Buying a Call Option Buying a call option is a financial move where you gain the right, but not the obligation, to purchase an underlying asset (like a stock) at a specific price, known as the strike price, before a certain date (the expiration date). This strategy is popular among traders who anticipate that a stock’s price will rise because call options allow you to profit from price increases without owning the stock outright. Pros: Strategic Investment: Call options allow you to profit if you anticipate a stock price will go up. They are part of a strategic financial plan rather than just pure luck. Defined Risk: You k
Buy Call or Buy Lottery: Your Choice is?
Singaporeans are the world’s number one when it comes to love for the lottery! In the 2019 World Lottery Yearbook, it was reported that Singapore spends $5.41 billion (about SGD 7.1 billion) annually on lottery tickets. This amounts to $935 per person (about SGD 1,240), far exceeding the $798 per person in Massachusetts, USA, which ranks second globally. Some tigers say that buying lottery tickets is less certain than purchasing call options. Some investors spend a small amount each week buying ODTE options, betting that this company will suddenly experience a surge in stock price.
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