Is Option Trading risky? What are the advantages and limitation of options. Rate of return comparison.
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do you have course, chatroom, watchlists alerts ?
Going purely on your mathematical formulas, you don't make any sense. You're calculating your ROR (relative profit) in 2 different ways, so you're comparing apples and oranges.
On the options, I didn't get all the terminalogy, but at the end of the day, you made a 7$ profit (10-3=7). On the stock, you made an 8$ profit. So, the stock is more profitable according to your own example with the right formulas.
Or I'm not following your example.
The option trade made you $699 whereas the equivalent stock trade made you $799. $100 less was made in the option trade due $1 added through time premium.
Options are for the real warriors.
Ok What would happen if the stock price was same or went below the price call you got ? Do you have to pay the difference plus the fees?
what are options? and what are stocks?
@xkmcrpk
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