/biz/ - Business & Finance

>>16924482
Yeah ok so here's a calculated real world example. GPC is about 100 dollars per share right now. The farthest out of the money I can purchase on the options chain (at least according to this calculator) is 135, so I've bought 10 contracts at 0.15 cents per share (15 dollars per contract) with a strike price in may.

So you can see if the price jumps up even like 10 percent within a month, you double your money. If it jumps 20 percent, you could walk away with thousands in profit. But that's not very likely, is it? Any historic volatility will be priced into the contracts, and GPC is cheap because it usually doesn't move that much.