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Jan 26, 2021
10:25:19pm
Heath Squashwell All-American
You don’t need the capital to buy the shares
When you buy options you get the option to purchase at strike. You can sell the options before the exercise date and you don’t have to buy the shares.

If you bought 1 contract with a strike of $10 for $1.00, and the stock moves to $20, at expiration that option would be worth around $10. Then you could sell it for your gain instead of exercising it.

Long story short, the people who bought options early on GME are flying sky high right now.
Heath Squashwell
Previous username
Barrio Coug
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Heath Squashwell
Joined
Dec 31, 2015
Last login
Apr 19, 2024
Total posts
11,534 (57 FO)