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Stocks versus Option costs
If you’re new to Options, one of the first features you should understand is that Options
can be very cost-effective to implement your outlook for a stock. In this example, let’s
look at a stock Caterpillar (CAT). In this example, we’re going to compare Stocks versus
Options strictly from a cost point of view.
The stock is going for about $84 today. To buy 100 shares, you’d have to spend about
$8400 or if you have a margin account, then you pay half that amount – $4200.
If you were to buy an At-the-money (ATM) Option in the Dec series, the equivalent of the
same 100 shares would cost about $250.
As you can see, this is very cost-effective. Of course, when you buy Options, there are
other considerations like time decay and Implied Volatility, but this video is a simple
example to illustrate the cost advantages of buying an option versus the stock itself.
But you must bear in mind – Options have many moving parts, and a newcomer is well-
advised to learn Options and how they work, both from a theoretical and practical
standpoint before you invest large sums of money. Paper trading first for a few months is
highly recommended.
OPTIONTIGER PROPRIETARY SYSTEMS
OptionTiger has created high-end intellectual property products that give an “edge” on every Options
trade. These are complete trading systems designed to produce returns on every trade, and come
complete with all adjustment techniques and risk management features.
CONDORMAX - Getting a positive return from every Iron Condor
http://www.optiontiger.com/optionedge-trading-system/
INCOMEMAX SPREADS AND STRADDLES SYSTEMS - Highly effective strategies to build small accounts
http://www.optiontiger.com/incomemax-strategies/
EARNINGSMAX - Playbook of trades for every Earnings season
http://www.optiontiger.com/earningsmax/
SWINGTRADEMAX - Swing trades from 3 days to 3 weeks capable of producing 20% to 80%
http://www.optiontiger.com/swingtrademax/
DAYTRADEMAX - Powerful Intra-day trading system using Options
http://www.optiontiger.com/daytrademax/
OPTIONTIGER COURSEWARE - 46 Courses from Beginner to Mastery levels in Options
http://www.optiontiger.com/intro-options/
FREE EBOOK - Top 7 Options Trading Mistakes
http://www.optiontiger.com/options-trading-mistakes-2/
To attend a Free Webinar and learn more about all OptionTiger systems, please register for the next Live
webinar here https://attendee.gotowebinar.com/register/4051832647030437633

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Stocks versus option_costs

  • 1.
  • 2. Stocks versus Option costs If you’re new to Options, one of the first features you should understand is that Options can be very cost-effective to implement your outlook for a stock. In this example, let’s look at a stock Caterpillar (CAT). In this example, we’re going to compare Stocks versus Options strictly from a cost point of view. The stock is going for about $84 today. To buy 100 shares, you’d have to spend about $8400 or if you have a margin account, then you pay half that amount – $4200. If you were to buy an At-the-money (ATM) Option in the Dec series, the equivalent of the same 100 shares would cost about $250. As you can see, this is very cost-effective. Of course, when you buy Options, there are other considerations like time decay and Implied Volatility, but this video is a simple example to illustrate the cost advantages of buying an option versus the stock itself. But you must bear in mind – Options have many moving parts, and a newcomer is well- advised to learn Options and how they work, both from a theoretical and practical standpoint before you invest large sums of money. Paper trading first for a few months is highly recommended.
  • 3. OPTIONTIGER PROPRIETARY SYSTEMS OptionTiger has created high-end intellectual property products that give an “edge” on every Options trade. These are complete trading systems designed to produce returns on every trade, and come complete with all adjustment techniques and risk management features. CONDORMAX - Getting a positive return from every Iron Condor http://www.optiontiger.com/optionedge-trading-system/ INCOMEMAX SPREADS AND STRADDLES SYSTEMS - Highly effective strategies to build small accounts http://www.optiontiger.com/incomemax-strategies/ EARNINGSMAX - Playbook of trades for every Earnings season http://www.optiontiger.com/earningsmax/ SWINGTRADEMAX - Swing trades from 3 days to 3 weeks capable of producing 20% to 80% http://www.optiontiger.com/swingtrademax/ DAYTRADEMAX - Powerful Intra-day trading system using Options http://www.optiontiger.com/daytrademax/ OPTIONTIGER COURSEWARE - 46 Courses from Beginner to Mastery levels in Options http://www.optiontiger.com/intro-options/ FREE EBOOK - Top 7 Options Trading Mistakes http://www.optiontiger.com/options-trading-mistakes-2/ To attend a Free Webinar and learn more about all OptionTiger systems, please register for the next Live webinar here https://attendee.gotowebinar.com/register/4051832647030437633