Question:

Is it better to buy an option at $.85 if the advice is buy call option for 1/09 at $27.5 at $1.10 or better?

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Is it better to buy an option at $.85 if the advice is buy call option for 1/09 at $27.5 at $1.10 or better?

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2 ANSWERS


  1. why when you can get an opinion here for free  


  2. Sure as long as you have conviction that the underlying security is going to go up.  If it is lower than the $1.10 advised call purchase the security must be lower than when the option was recommended in the first place.  But this also means that the underlying stock will need to appreciate even higher to meet the strike price of the option.

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