cricketman
Member
Hi everyone. I am a little bored with the share price action over the last few months and I thought I would buy a call option. Can I check how these work?
I am based in Europe, so I actually have to buy a warrant but I think they are pretty much the same.
So I see that I can buy 1,000 call options for TSLA at a strike price of $1,040 by 15th Dec 2023. These would cost me roughly $2 each. Does this mean that I pay $2,000 now for a call on 1,000 shares which lets me buy 1,000 shares of TSLA at a price of $1,040 anytime before 15th Dec 2023?
If so, this seems an excellent use of capital i.e. if TSLA goes up to $1,542 by then, I execute the option and make $500,000 for an initial capital outlay of just $2,000?
Am I understanding this right? Thanks for your help!
I am based in Europe, so I actually have to buy a warrant but I think they are pretty much the same.
So I see that I can buy 1,000 call options for TSLA at a strike price of $1,040 by 15th Dec 2023. These would cost me roughly $2 each. Does this mean that I pay $2,000 now for a call on 1,000 shares which lets me buy 1,000 shares of TSLA at a price of $1,040 anytime before 15th Dec 2023?
If so, this seems an excellent use of capital i.e. if TSLA goes up to $1,542 by then, I execute the option and make $500,000 for an initial capital outlay of just $2,000?
Am I understanding this right? Thanks for your help!