Explore Your Options by Jay Kaeppel
BULL CALL SPREADS FOR PARTICIPATING IN RALLIES
I think a particular high-priced stock (AAPL) will break out to the upside. My portfolio size does not allow me to buy 100 shares of the stock and even the call options are pretty expensive. I looked at trading a bull call spread to lower the cost but that position limits profit potential. Is there a way to participate in high-priced stocks even if my account is relatively small?
The short answer is “absolutely.” One of the great advantages of trading options is the ability to “craft” positions to meet a certain goal or set of criteria ...