TIP150: Questions from the Audience, Artificial Intelligence (AI), Options Trading, Value Investing, & The Intelligent Investor (Business Podcast)
We Study Billionaires - The Investor’s Podcast Network
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How Much Does It Cost to Buy Options?
Jay Parini: Could you give us some numbers in the terms of the returns that you can expect to something that is so far out of the money? He typically has been looking at one year-old positions and then a strike price which is 30% lower than what it's currently trading at. Parini: I wouldn't imagine though that the stocks that you're talking about, whenever you're saying like 30% less, it's not a lot of money that you would get out of a position like that based on how options are priced.
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