Pokey, usually you have margin with options but do
Post# of 36566
(Total Views: 370)
Posted On: 03/25/2020 7:33:53 PM
Pokey, usually you have margin with options but don’t think it is necessary. You have to sign up for options trading on your acct. but there are levels. Usually level one is for writing covered calls. Meaning if you own 100 shares of Appl stock, that is equivalent to 1 option contract (100 shares=1 contract). So a covered call is you sell someone the right to buy your appl stock before an expiration date in the future. This is the very basic, so you get money up front, and if appl does not for up to the exercise price or below it with a put option, it expires worthless and you keep your stock. Then you do it again. That is great if you have a long term stock to hold and you want to generate income.
Then with level 2-3 options you can buy options yourself that you can trade and they can expire worthless, so they are risky that way.
Then with level 2-3 options you can buy options yourself that you can trade and they can expire worthless, so they are risky that way.
(0)
(0)Generex Biotechnology Corp. (GNBTQ) Stock Research Links
Disclaimer: Of course, all of this is my opinion and you should not make any investment decisions based on my opinion. I have not received any non-public information.