Call options are in the money when the underlying stock that it is written on has a price higher than a the call option strike price. A call option can be used to call away a stock at the price of the strike with the profits being how much higher the stock was trading at […]
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How can an option trader enter into a position, risk only $500 of their total trading capital but control $50,000 worth if stock? The numbers will vary greatly depending on the option pricing factors of intrinsic value and the Greeks but the point here is that it is possible to control a large dollar value of shares with a small outlay of cash. You
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