Is anyone familiar with Yahoo! Stock Options Analyzer? I am interested in Straddle Options. Do ALL stock options require margin? Can stock option sbe bought for less than $100.00 per contract (long term expirations)? Thanks.
2006-06-19 06:45:15 · 1 answers · asked by westphalia1 2 in Business & Finance ➔ Investing
Margin would only be required if you are selling options. You didn't mention whether or not you wanted to buy or sell straddles. The I-Bank wants to make sure you can cover your losses. When buying, the only thing you can lose is your premium.
Listed stock options have 100 shares per contract, so the only way you could buy one for that price is if the option value is less than $1.00 per share. This would only happen if the shares were selling for a few dollars per share (but penny stocks don't usually have listed options) or if you bought out-of-the-money options -- which means you are really just gambling.
2006-06-19 07:59:34 · answer #1 · answered by Ranto 7 · 2⤊ 0⤋